Neptune Orient Lines - OCBC Investment 2016-06-07: CMA CGM launches conditional S$1.30 cash offer for NOL

NOL NEPTUNE ORIENT LINES LIMITED N03.SI

Neptune Orient Lines: CMA CGM launches conditional S$1.30 cash offer for NOL

CMA CGM yesterday launched an all-cash voluntary conditional general offer of S$1.30/share for all outstanding shares of Neptune Orient Lines Limited (NOL) other than those it already owns. The launch of this offer follows approvals by the relevant regulatory authorities in the European Union and China.

CMA CGM currently owns 10.5% of all NOL shares and intends to delist and privatize NOL through this offer. This offer is conditional upon CMA CGM having received more than 50% of the issued shares of NOL.
NOL’s majority shareholder, Temasek Holdings, which owns 66.78% of all NOL shares, will tender all of their NOL shares in acceptance of the offer having given irrevocable undertaking to do so. Hence, we expect the offer to be declared unconditional following Temasek’s acceptance.
Given the weak industry outlook, we maintain our recommendation for investors to ACCEPT THE OFFER, given our current FV of S$1.00.

Eugene Chua OCBC Securities | http://www.ocbcresearch.com/ 2016-06-07

OCBC Securities SGX Stock Analyst Report ACCEPT OFFER Maintain ACCEPT OFFER 1.00 Same 1.00