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CMA CGM makes bid to buy remaining shares in NOL for US$2.4 billion

FRENCH shipping line CMA CGM is pushing ahead with its plan to acquire Singapore-based Neptune Orient Lines (NOL), the parent company of ocean liner, APL, for an estimated US$2.4 billion, in order to expand and strengthen its presence in Singapore.

CMA CGM makes bid to buy remaining shares in NOL for US$2.4 billion
03 June 2016 - 06:51

CMA CGM makes bid to buy remaining shares in NOL for US$2.4 billion
FRENCH shipping line CMA CGM is pushing ahead with its plan to acquire Singapore-based Neptune Orient Lines (NOL), the parent company of ocean liner, APL, for an estimated US$2.4 billion, in order to expand and strengthen its presence in Singapore.
The French carrier said that conditions in its original announcement have been satisfied or waived, and it will pay S$1.3 (US$0.94) for each NOL share that it does not already own, control or has agreed to acquire, reported American Shipper. 
The price represents a 48.6 per cent premium over the price at which NOL shares were traded on the Singapore Stock Exchange immediately preceding the announcement of a potential sale of NOL.
Temasek Holdings, Lentor Investments and Startree Investments, companies affiliated with the Singapore government, have pledged to tender 66.78 per cent of NOL shares.
CMA CGM said in its offer announcement the acquisition "will create a new global force in shipping which will have a capacity of 2.35 million TEU, a market share of 11.7 per cent, a fleet of 540 vessels, and a combined annual turnover of $21 billion".
CMA CGM said that it "intends to perform a strategic review encompassing both the NOL Group and the current CMA CGM Group with a view to deleveraging the combined group further to the offer with the objective to sell assets in the aggregate amount of at least US$1 billion."
It added: "Further to this strategic review, CMA CGM may also consider redeploying certain ships among trade lanes with a view to optimising fleet usage."
Under the planned acquisition, Nicolas Sartini would become the new chief executive officer of NOL, while NOL's current CEO and group president, Ng Yat Chung, will remain an executive director.

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