Hapag-Lloyd Speeding Up IPO Plans

zoom German carrier Hapag-Lloyd is pushing ahead with its initial public offering (IPO) plans and has mandated investment banks Deutsche Bank, Goldman Sachs and Berenberg to lead the USD 5.5 billion transaction, Reuters reports. Selection of the banks indicates that the plans to float a minority stake on Frankfurt stock exchange are being accelerated targeting issuance this fall. The net proceeds from the IPO could be used to cover the companys pretty extensive debt of USD 3.65 billion. However, the plans are yet to be confirmed by Hapag-Lloyd. The container line ended the first three months of 2015 with a EUR 128.2 million (USD 144.2 million) net profit, shaking off the memories of the same period a year earlier, when the carrier saw a USD 119 million net loss. The improved results were chalked up to a rise in transport volume and revenue year-on-year due to the merger with CSAV, and the effects of the company’s efficiency program. A strong dollar and lower bunker bills also helped offset low freight rates, the company said. The merger is estimated to bring annual savings of at least USD 300 million. World Maritime News Staff