Jul 4--FRENCH shipping giant CMA CGM has signed a binding agreement to sell 90 per cent of Global Gateway South (GSS) Terminal in Los Angeles to EQT Infrastructure and its partner P5 Infrastructure ("P5") for US$817 million.

　　Following the completion of the transaction, CMA CGM will remain a minority shareholder holding 10 per cent of GGS terminal, which has an enterprise value of $875 million.

　　CMA CGM's executive officer, Farid Salem, said: "We are very pleased to partner with EQT Infrastructure. Together we will develop GGS into a world class terminal company. The terminal will remain an important part of our industry leading logistics network, and will have an opportunity to grow alongside CMA CGM.

　　"Throughout the sales process, EQT Infrastructure and P5 expertise have focused on growth in addition to a responsible, hands-on ownership approach, which we consider highly beneficial to our future partnership."

　　Transaction terms also provide for the CMA CGM to receive additional deferred, contingent cash consideration of which sequence and quantum will depend on GGS' future operating and financial performance, the French shipping company said in a statement.

　　CMA CGM and its subsidiaries entered into a long-term industrial partnership and utilisation agreement with EQT Infrastructure and P5, allowing the company to remain a major user of the terminal with preferential conditions.

　　The disposal of GGS enables CMA CGM to complete the financial deleveraging plan communicated in December 2015 upon announcement of the NOL's acquisition.

　　The transaction is fully in line with CMA CGM's strategy to focus on its shipping business while securing its operations through shared ownership of key terminals.

　　Closing of the transaction is subject to anti-trust and regulatory approvals, including clearance from the Committee on Foreign Investment in the United States (CFIUS), and is expected to occur by end of 2017, the company explained.

(Source:shippingazette)