Financial News

Hamburg, Thursday, 28 September 2017

Hapag-Lloyd to conduct capital increase following merger with UASC

Capital increase as announced during the Hapag-Lloyd-UASC merger / Proceeds mainly used to reduce debt / Subscription price at EUR 30.00

Hapag-Lloyd AG will now carry out the capital increase that was agreed upon as part of the merger of Hapag-Lloyd and UASC. The gross proceeds are expected to amount to approx. EUR 352 million (approx. USD 414 million).

The official merger of the two companies occurred on 24 May 2017. At the Annual General Meeting on 29 May 2017, the shareholders approved new authorised share capital for a capital increase. The capital increase is backstopped by the primary shareholders CSAV Germany Container Holding GmbH, Kuehne Maritime GmbH, Qatar Holding Germany GmbH and The Public Investment Fund of the Kingdom of Saudi Arabia for a total of approx. EUR 352 million. They have committed to exercise their subscription rights and to acquire new shares that are not acquired by other shareholders.

The Company's share capital of EUR 164,042,940.00 will increase by EUR 11,717,353.00 to EUR 175,760,293.00 by issuing 11,717,353 new no-par shares in exchange for cash while maintaining the shareholders' subscription rights. The proportionate amount of the share capital attributable to each new share is EUR 1.00. The new shares became eligible for dividends on 1 January 2017 and shall be offered to all shareholders at a subscription price of EUR 30.00 and a ratio of 14:1 per share.

The subscription period for the shareholders is expected to start on 2 October 2017 and end on 16 October 2017. The expected gross issue proceeds from the capital increase of approx. EUR 352 million will primarily be used for the repayment of debt as well as general corporate purposes.

"Following the successful merger with UASC, we will use the capital increase to strengthen our capital structure and to use the proceeds to reduce the leverage of the company. This enables us to focus on enhancing our strategic and operating objectives," explains Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

Subject to the approval of the prospectus by the German Federal Financial Supervisory Authority and the publication of the approved prospectus, which is currently expected for today, the subscription offer is intended to be published in the German Federal Gazette on 29 September 2017. The securities prospectus will be made available for download on the website www.hapag-lloyd.com under Investor Relations after approval of the German Federal Financial Supervisory Authority.

About Hapag-Lloyd
With a fleet of 219 modern container ships and a total transport capacity of 1.6 million TEU, Hapag-Lloyd is one of the world's leading liner shipping companies. The Company has around 13,000 employees and over 436 offices in 126 countries. Hapag-Lloyd has a container capacity of 2.3 million TEU - including one of the largest and most modern fleets of reefer containers. A total of 129 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. Hapag-Lloyd is one of the leading operators in the Transatlantic, Middle East, Latin America and Intra-America trades.