7 November 2023 (Lloyd's List) - GERMANY’s Hamburger Hafen and Logistik AG has recommended shareholders accept Mediterranean Shipping Co’s takeover offer, which will include a €450m ($481m) equity boost.
HHLA said its board found adequate MSC’s offer of €16.75 per share for all free floating A-shares, which would ultimately give MSC a 49% stake.
It has reached a binding preliminary agreement with MSC and the City of Hamburg, under which the shareholders would provide €450m in equity capital to invest in the business in the next few years.
HHLA and its intermodal subsidiary Metrans, a logistics service provider, would stay independent, ensuring customers got equal access to its terminals and services throughout Europe.
What is more, HHLA will keep decision-making authority over investment planning, in particular modernising its Hamburg container terminals and expanding its intermodal network internationally. There are plans for investments totalling €775m from 2025-2028.
The deal also stops employees being made redundant for operational reasons for at least five years.
HHLA chief executive Angela Titzrath said the €450m commitment would give the company considerable resources to become a leading European logistics company.
“In our view, the extensive agreements and MSC’s additional financial commitment underline the attractiveness of HHLA and its strategy as well as MSC’s sustained interest in a long-term successful development of the company,” she said.
“We are confident that we will be able to also reach a binding agreement with the City of Hamburg and MSC on the remaining points in the coming weeks.”
