The medium-sized Chilean shipping line, CSAV closed the chapter of an illustrious history of 148 years as a shipowner during the pandemic, by deciding in 2020 to discontinue all maritime transport operations. Today, it functions solely as a front for the company’s investment in Hapag-Lloyd. In other words, as of today, CSAV is made up entirely of Hapag-Lloyd, says Alphaliner.
This investment, started in 2014 and reinforced in 2019, has been very beneficial. CSAV reported the highest profit in its history in 2021 with USD 3.2 billion, due entirely to its 30% stake in the German airline. The company did not contribute other income.
This transformation began in 2014 when CSAV merged its container transport business with Hapag-Lloyd, and became a 34% shareholder, jointly controlling 70% of the line through its agreement with the other majority shareholders.
CSAV’s stake was diluted twice following Hapag-Lloyd’s IPO in 2015 and its merger with USAC in 2017, but it began to rebuild its shareholding in 2019, again reaching its desired target of 30% in early 2020. .
Since formally closing its own direct business in July 2020, Hapag-Lloyd has represented more than 85% of CSAV’s consolidated assets and 100% of its profits. For its part, Hapag-Lloyd’s net profit went from USD 390 M to USD 10.7 bn between 2019 and 2021. It distributed a dividend to shareholders of USD 6.6 bn in May.
CSAV continues to be listed on the Santiago Stock Exchange, and describes itself as “an efficient vehicle to invest in Hapag-Lloyd”.
Source: Alphaliner
