Stock in Neptune Orient Lines, parent of liner company APL, have risen nearly 22 percent since the beginning of the month as the company entered acquisition talks with CMA CGM.
Stock in Singapore-owned Neptune Orient Lines, parent of liner company APL, have risen 21.8 percent since the beginning of the month.
NOL, whose largest shareholder is Singapore’s sovereign wealth fund Temasek, announced early this month it had entered into preliminary discussions with Danish giant Maersk Line and CMA CGM of France about a potential merger or sale. Over the weekend, the company said it has begun exclusive acquisition talks with the CMA CGM, the third largest ocean carrier worldwide.
Shares of NOL, which are traded on the Singapore stock exchange, were down to Singapore $0.96 (U.S. $0.68) as of close of markets on Monday, Nov. 2, but have since jumped to a closing price of S$1.17 today.
The company said in a statement it now has until Dec. 7 to close a deal with CMA CGM under the terms of the exclusivity agreement. Any merger or acquisition of NOL would still require approval from the relevant regulatory authorities in Asia, Europe and the United States.
Industry analyst Drewry estimates the enterprise value of NOL at close to $4.3 billion with outstanding debt of around $2.9 billion. This is down $1 billion from the end of 2014 year following the February sale of APL Logistics to Tokyo-based Kintestsu World Express for $1.2 billion.
Shares of NOL see big bump on sale talks
