HHLA wrests a high million euro concession from MSC
Following concessions from its future major shareholders, the management of the Hamburg port operator HHLA is now backing the acquisition of the major Swiss shipping company MSC. Hamburger Hafen- und Logistik-AG (HHLA) announced that it had succeeded in securing commitments from the City of Hamburg and the Mediterranean Shipping Company (MSC), above all a 450 million euro equity injection, which is to flow after completion of the takeover. "This will give us considerable additional funds to drive forward the successful development of HHLA into a leading European logistics company even more actively and quickly," said Angela Titzrath, CEO. Dismissals for operational reasons have been ruled out for at least five years.
Under these conditions, which were laid down in a preliminary agreement, the Executive Board and Supervisory Board backed the offer from MSC, which had taken HHLA by surprise in September. The shareholders are recommended to accept the offer of EUR 16.75 per HHLA Class A share. MSC and the Free and Hanseatic City of Hamburg had already agreed in advance to divide HHLA among themselves.
MSC will acquire a 49.9 percent stake, while the Free and Hanseatic City of Hamburg, which previously held just under 70 percent, will reduce its stake to 50.1 percent. Including debt, HHLA is valued at 2.6 billion euros. MSC's offer to the remaining shareholders runs until November 20.
Verdi wants collective agreement with HHLA
The takeover bid had triggered concerns among the shipping companies that MSC could claim special rights. The largest German shipping company Hapag-Lloyd, which together with its partners accounts for more than half of container handling in Hamburg, had considered a counter-offer, but ultimately turned it down. According to HHLA, the agreement with MSC and the city also ensures equal treatment of all customers. "All customers will continue to have equal access to all HHLA terminals and services throughout Europe." MSC will also not interfere with the Executive Board's investment planning, according to the statement.
The modernization of the container terminal in Hamburg, which is expected to cost 775 million euros in the years 2025 to 2028 alone, is thus secured. MSC and the city are behind the strategy of the Management Board. However, Titzrath explained that there are still outstanding points that should be bindingly agreed with the two future major shareholders in the coming weeks.
The trade union Verdi welcomed the agreement, but called for it to be secured by a collective agreement. "The inclusion of these regulations in the business combination agreement shows the will to maintain secure and good jobs for the employees," said the deputy head of Verdi, Christine Behle. The agreements with MSC have a minimum duration of 40 years. "However, a collective agreement between ver.di and HHLA must now be concluded as a matter of urgency, which also sets out binding entitlements for employees." She called for improvements to co-determination on the Supervisory Board.
Source: www.ntv.de
