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
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http://www.ocbcresearch.com/
2016-06-17
OCBC Securities
SGX Stock
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