Neptune Orient Lines - OCBC Investment 2016-06-28: PUBLIC FLOAT FALLS BELOW 10%

Neptune Orient Lines - OCBC Investment 2016-06-28: PUBLIC FLOAT FALLS BELOW 10% NOL NEPTUNE ORIENT LINES LIMITED N03.SI 

Neptune Orient Lines - PUBLIC FLOAT FALLS BELOW 10%

  • CMA CGM now has 90.7% ownership
  • Likely to be delisted
  • Ceasing coverage

CMA CGM intends to delist NOL

  • CMA CGM announced yesterday that as at market close on 27 Jun, it now owns 90.68% of NOL’s share capital. 
  • With the public float now falling below the minimum threshold of 10%, SGX will suspend the trading of NOL shares at the close of offer. 
  • CMA CGM has also stated it does not intend to take any steps for the suspension to be lifted, if any, and intends to have NOL delisted from SGX following the close of offer.

Offer to close on 18 July

  • As highlighted previously, CMA CGM intends to exercise its right of compulsory acquisition to acquire all the NOL shares held by shareholders who have not accepted the offer, should its ownership in NOL cross above 91.05%. 
  • Note again that CMA CGM has stated it will not increase the offer price of S$1.30/share in cash. An important date to note is that all acceptance of the offer must be received no later than 5:30pm (Singapore time) on 18 Jul, and NOL shareholders who accept the offer will be paid within seven business days after receipt of their valid acceptance.

Ceasing coverage with delisting to come

  • As a recap, we had recommended shareholders to accept the cash offer or sell in the open market at a higher price, if possible. 
  • With CMA CGM’s intention to delist NOL, we are now CEASING COVERAGE on NOL.

Eugene Chua OCBC Securities | http://www.ocbcresearch.com/ 2016-06-28
OCBC Securities SGX Stock Analyst Report CEASE Maintain ACCEPT OFFER 1.00 Same 1.00