Arab Today, arab today for singaporebased neptune orient lines
Last Updated : GMT 09:10:47
Arab Today, arab today
Arab Today, arab today

France's CMA CGM offers to buy

For Singapore-based Neptune Orient Lines

Arab Today, arab today

Arab Today, arab today For Singapore-based Neptune Orient Lines

French transportation firm CMA CGM SA has offered to buy Singapore-based container liner
Singapore - Arab Today

French transportation firm CMA CGM SA said Monday it has made a $2.4 billion bid for Singapore-based Neptune Orient Lines (NOL) to try to cement its own position as a global leader in container shipping.

The proposed cash acquisition, announced in a filing with the Singapore Exchange where NOL is listed, values it at around Sg$3.4 billion ($2.4 billion).

Marseille-based CMA CGM, the world's third largest container shipping firm, is offering Sg$1.30 for each NOL share, 6.1 percent more than Friday’s closing price of S$1.225.

State-linked investment firm Temasek Holdings said it would sell its nearly 67 percent stake in NOL, a move that would trigger a mandatory takeover offer for the firm's remaining shares.

The offer however needs to fulfil some preconditions, mainly the approval of anti-trust authorities, within a year after Monday's announcement, the filing said.
"We are supportive of this transaction as it presents NOL with an opportunity to join a leading player with an extensive global presence and solid operational record," said Tan Chong Lee, head of portfolio management at Temasek.

He said the merger of the two companies "will create a leading shipping company" worldwide.

CMA CGM said the acquisition of NOL would enable it to "cement its position among the global leaders in the container shipping industry" with a capacity of 2.4 million TEUs (twenty-foot equivalent unit containers), a market share of about 11.5 percent, a fleet of 563 vessels and a combined turnover of about $22 billion.

CMA CGM said it "attaches significant importance to Singapore and the region for the redeployment of its strategy in Asia and intends to maintain high transit volume in Singapore".

CMA CGM currently has a global market share of 8.8 percent with 469 vessels. Last year, the group handled more than 12 million TEUs and generated up to $16.74 billion in revenues.
Bloomberg News said an acquisition of NOL would strengthen the French company's position as it competes with market leaders A.P. Moeller-Maersk A/S and Mediterranean Shipping Co.

A capacity glut, falling demand and lower rates are prompting shipping firms to explore mergers and acquisitions, Bloomberg said.

"It's a great price for NOL shareholders to achieve given the current industry outlook," said Rahul Kapoor, Singapore-based director for equity research at Drewry Maritime Services.

"The global industry valuations remain depressed and for NOL to achieve closer to book value at sale is commendable," he told AFP in an email.

"For CMA, it's an opportunistic move. CMA will see its debt rise and credit matrix worsen. We expect marginal synergies initially and expect CMA's earnings under pressure initially from the acquisition as underlying markets remain weak in the short to medium term."

NOL was formed in December 1968, three years after Singapore's independence, and played a major role in its transformation into a global transhipment hub.

Initially a wholly owned government entity, it went public in 1981 to fund its global expansion drive although Temasek held the majority of the shares.

In 1997 NOL bought US-based container shipping firm APL, formerly the American Presidents Line, gaining access to major terminal hubs in Asia and North America.

NOL divested from its tanker businesses in 2003 to focus on container shipping and logistics.

However, the company has in recent years been racking up losses due to sluggish global trade and lower freight rates. Last month it reported a net loss of $96 million for the third quarter, widening from a loss of $23 million in the same period the year before.

NOL this year sold its logistics business -- APL Logistics Ltd. -- to Japan's Kintetsu World Express Inc. for $1.2 billion.
Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today for singaporebased neptune orient lines Arab Today, arab today for singaporebased neptune orient lines

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today for singaporebased neptune orient lines Arab Today, arab today for singaporebased neptune orient lines

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday