CMA CGM plans $2B port terminal, ship sales to fund CEVA Logistics acquisition

Dive Brief:

• CMA CGM plans to sell selected port terminals, ships and other assets to raise roughly $2 billion to finance its acquisition of CEVA Logistics, according to Reuters. The carrier completed the acquisition in April 2018, valuing CEVA at roughly $1.7 billion.
• In August, the carrier stated its efforts to "turn the company around" would result in CEVA generating "positive free cash flow" by Q4 2019 and achieving $9 billion in revenue by 2021. However on Monday executives told Reuters an uncertain Chinese market and other economic factors have pushed those targets to 2023 or 2024.
• To finance the acquisition, CMA CGM intends to sell stakes in 10 port assets to its joint venture with China Merchants Port Holdings, called Terminal Link, for $968 million, Reuters reported. The other portion is expected to come from the sale and lease-back of certain ships ($860 million), "a securitization program relating to customer receivables at CEVA," ($100 million) and the sale of a logistics platform in India ($93 million).
  
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