Neptune Orient Lines - OCBC Investment 2016-06-17: Take the offer

Neptune Orient Lines - OCBC Investment 2016-06-17: Take the offer NOL NEPTUNE ORIENT LINES LIMITED N03.SI 

Neptune Orient Lines: Take the offer

  • The voluntary general offer (VGO) of S$1.30/share made by CMA CGM for NOL was declared unconditional on 9 Jun after Temasek tendered its NOL shares representing ~66.8% stake in acceptance of the VGO. 
  • According to SGX rules, shares of NOL will be suspended for trading when public float falls below 10%, and CMA CGM intends to delist NOL. 
  • Based on the offer, CMA CGM’s right for compulsory acquisition will be triggered only when it acquires not less than 90% of the total issued NOL shares other than those it already owns as at date of offer (i.e. 10.5%). Therefore, if CMA CGM total stake in NOL crosses above ~91.1%, it will exercise its right to compulsorily acquire all the remaining NOL shares from shareholders who have not accepted the offer. 
  • However, it is possible that shareholders who did not accept the offer may end up with shares of suspended/delisted NOL, if CMA CGM stake is above 90.0% but below 91.1%. 
  • Hence, in view of these factors, we recommend investors to ACCEPT THE OFFER. As of 16 Jun, CMA CGM owns 85.8% stake in NOL, with the offer due to close on 18 Jul 16




Eugene Chua OCBC Securities | http://www.ocbcresearch.com/ 2016-06-17
OCBC Securities SGX Stock Analyst Report ACCEPT OFFER Maintain ACCEPT OFFER 1.00 Same 1.00


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