CHILE's Compania Sud Americana de Vapores (CSAV) has announced it will order seven containerships from Samsung Heavy Industries for US$570 million.
CSAV to buy seven containerships from Samsung for US$570 million CHILE's Compania Sud Americana de Vapores (CSAV) has announced it will order seven containerships from Samsung Heavy Industries for US$570 million, prepay debt and seek shareholder approval for the expenditure.
In recent years, CSAV has faced steep losses as it grapples with lower rates, high fuel prices and expensive leases, Reuters reported.
Under the management of the Luksic family CSAV spun off its SAAM storage and logistics unit in 2012 to reverse losses. The Luksics, Chile's richest family, became Vapores' majority shareholder in early 2012 when the company completed a $1.2 billion capital increase.
CSAV, which now ranks 20th among international container carriers though briefly ranked seventh a few years ago, will buy the ships to replace chartered vessels and boost its owned fleet to 55 per cent from 37 per cent, the company said.
Deliveries will start in late 2014, and CSAV has an option to purchase another seven vessels.
The CSAV board will seek shareholder approval on April 29 for a $500 million capital increase to finance the purchase. The board also approved the prepayment of $258 million in debt with American Family Life Assurance Co.
