Dubai-based container shipping firm United Arab Shipping Company (UASC) is considering to sell its USD 600 million-worth chemical tanker segment as part of the merger plans with the German shipping line Hapag-Lloyd AG, Bloomberg cited sources familiar with the matter.
The company is reportedly working with the Bank of America Corp. to find buyers for its stake in United Arab Chemical Carriers (UACC).
Bloomberg added that the sale did not reach a final decision yet.
World Maritime News contacted UASC for more details on the matter, however, the company is yet to reply.
The announcement follows the approval of UASC’s proposed merger with Hapag-Lloyd at the end of June, when all six of UASC’s shareholding states voted unanimously to approve the plan.
The merger implies a relative valuation of the two businesses at 72% for Hapag-Lloyd’s shareholders and 28% for UASC’s shareholders.
“Several legal and administrative tasks need to be completed before the binding agreement can be formally signed,” UASC earlier said.
Once the regulatory approvals are received, the integration of some activities are expected to begin, however, the companies will still continue to operate in their current alliances until the end of March 2017.
The merger would create the fourth biggest container shipping group in the world.
World Maritime News Staff