In International Shipping News 30/11/2016
The potential sale of Hamburg Sϋd is attracting interest among top-tier ocean carriers, but the high asking price for the German North-South trade specialist remains the largest stumbling block on the way to a potential deal. Hamburg Sϋd’s owners are believed to be asking for close to $5 Bn to sell the company. The Oetker family, which controls 100% of Hamburg Sϋd, had previously been unable to reach a consensus on whether to sell the company or not. However, the increasingly difficult north-south trade conditions and the disappearance of similar mid-sized carriers may have prompted the family members to reconsider their positions, with a decision expected to be made this week.
Hamburg Sϋd’s shipping operations, including its liner and tramp shipping operations, accounted for 49.5% of the Oetker Group’s total turnover in 2015. The privately-held Oetker Group does not publicly report full financial results, apart from overall turnover numbers. Total turnover from liner shipping operations, after adjustment for foreign exchange losses, has been declining since 2013, when it hit a peak of $6.40 Bn. Turnover dropped to $6.32 Bn in 2014 and $6.26 Bn in 2015, despite the inclusion of CCNI’s liner shipping activities since March 2015. The total value of ships and container assets on the Oetker Group’s books is listed at $2.19 Bn as at the end of 2015. The carrier has very little debt on its books and any potential buyer will have to fork out cash to acquire Hamburg Sϋd, as there would be little appetite for a non-cash/share offer for the highly independent Oetker Group.
Source: Alphaliner
