Temasek bids loss-making NOL goodbye for $3.4b

The deal will be completed in mid-2016.

French shipping company CMA CGM has unveiled its $3.4b pre-conditional general cash offer for Temasek’s 67% stake in Singapore-based container shipping group Neptune Orient Lines (NOL).

Upon gaining approvals from antitrust authorities, CMA CGM will launch an offer at a price of $1.30 per share, which represents a 49% premium to NOL’s unaffected share price and a 33% premium to NOL’s 3 month volume-weighted average share price to July 16, 2015.

The offer comes after over two weeks of exclusive talks between CMA CGM and NOL.

“The combination of NOL and CMA CGM will create a leading shipping company that delivers reliable and efficient service to its customers. Their complementary strengths will yield mutually beneficial results,” said Tan Chong Lee, Head Portfolio Management at Temasek.

The transaction is valuing NOL at a price to book ratio of 0.96 times. The transaction will be financed by a combination of available cash and bank financing provided by a syndicate of international banks.

The boards of NOL and CMA CGM have unanimously approved the terms of the proposed transaction, which is still subject to the approval of the relevant anti-trust authorities as set out in the Pre-Conditional Offer Announcement.

The offer will be launched without delay after approval of the relevant authorities which is expected by mid-2016.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia