CMB Expects To Sell Naviga Insurance

Belgian shipping company CMB expects to sell off its Naviga insurance unit within the next three months and book a significant capital gain, Finance Director Patrick De Brabandere said. "So far we have contacted a number of candidates via our investment banking unit, but we have had no formal talks with them yet," De Brabandere said. "It should take three months maximum for a sale to take place." He said the candidates approached were both Belgian and international. He declined to say how much CMB was asking for Naviga. "All I can say is we expect to book a significant capital gain from the sale," he said. CMB in 1998 had insurance premiums worth $80.2 million. De Brabandere said CMB was selling Naviga to focus on its core shipping and port handling activities and to pay off large debts. CMB as of year-end 1998 had debt of $1.75 billion. The sell-off of Naviga would make CMB's businesses more cyclical, but would also free up capital to invest in opportunities in the shipping market. "Once we pay off some of CMB's debts we will be better positioned to take advantage of opportunities available in the troubled shipping market," he said. CMB has been streamlining its activities since the beginning of the year. Earlier this year CMB divested its liner shipping activities, selling off its Transinsular and AMI units. De Brabandere said CMB did not plan to sell any other units in the near future. The company still plans to seek a separate listing for its oil tanker unit Euronav, but will wait until stock market conditions improve, he added. - (Reuters)