CAPITAL
INCREASE 2020

At an extraordinary shareholders’ meeting held on May 19, 2020, shareholders of Compañía Sud Americana de Vapores (CSAV) agreed to increase capital by US$350 million and absorb the company’s accumulated deficit.

The funds raised in this capital increase will be used to adjust CSAV’s financial debt level after investing US$450 million to acquire a 4.14% stake in Hapag-Lloyd to reach 30%. This purchase was financed with a US$100 million bond issuance and US$350 million in bridge loans granted mainly by its controlling shareholder, Quiñenco. This capital increase of US$350 million will enable the Company to pay down these bridge loans.

On August 17, 2020, CSAV announced that the pre-emptive rights price for the capital increase was fixed at US$0.0241 per share. This means that 14,523,000,000 new shares will be placed. This share price was defined based on the weighted average price in Chilean pesos of the transactions registered on Santiago Exchange (Bolsa de Comercio de Santiago) between August 10 and August 14, 2020, of Ch$22,6174 per share, or US$0.0284 per share using the “Observed Exchange Rate” of Ch$796.73 per US dollar published on August 17, 2020. It also includes a discount of approximately 15% in order to create a special incentive to subscribe the capital increase and cover possible market fluctuations.

Capital Increase Documents
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