French container shipping group CMA CGM has taken full control of Singapore’s Neptune Orient Lines after crossing the 90% ownership threshold required to take the company private.
CMA CGM announced Monday that it now owns 2,361,044 shares representing approximately 90.68% of NOL’s share capital after launching its all-cash offer for NOL on June 6, 2016.
Under Singapore law, the Singapore Exchange Securities Trading Limited (SGX-ST) may now suspend trading of NOL shares at the close of the offer. CMA CGM says it does not intend to take steps for the suspension to be lifted.
The company also intends to have NOL delisted from the Main Board of the SGX-ST. CMA CGM further confirmed that it intends to exercise its right under Singapore law to acquire all the NOL shares held by shareholders who have not excepted the offer should it acquire more than 91.05% of NOL shares.
CMA CGM is offering NOL shareholders a firm offer price of SGD 1.30 per NOL share in cash.
CMA CGM has said it believes that the acquisition of NOL would enable CMA CGM to reinforce its position as a leader in the container shipping industry, with a capacity of approximately 2.35 million TEUs, a market share of approximately 11.7%, a fleet of approximately 540 vessels, and a combined annual turnover of approximately US$21 billion.
The acquisition also reinforces CMA CGM’s commitment to Singapore as a leader in the maritime and shipping industry.
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