CMA CGM’s offer to acquire NOL goes unconditional

CMA CGM’s offer to acquire NOL goes unconditional

CMA CGM’s offer to acquire Neptune Orient Lines (NOL) has been declared wholly unconditional as the Singapore-based carrier’s majority shareholders tendered shares in its acceptance.

Temasek and its affiliates’ tender of all of their shares in NOL brought the French group’s stake in the company to 78.07%.

The current stake include 10.79% of shares acquired in market purchases and 67.29% of shares in acceptances received, among which 66.77% tendered by Temasek and its affiliates.

Following the offer’s implementation agreement, the composition of NOL’s board of directors was changed as of June 9, with Rodolphe Saadé, current vice-chairman of CMA CGM, as the chairman of the 10-member reconstituted board.

CMA CGM said in a statement that it does not intend to increase its current offer to pay NOL’s shareholders SGD 1.30 (US$0.96) per share in cash.

The company added: “This offer provides NOL shareholders with an opportunity to realise their investment in NOL at a 49% premium to NOL’s unaffected share price on 16th July 2015 and a 33% premium to NOL’s 3-month volume-weighted average share price prior to 16th July 2015.”

According to a company statement, acceptance of the offer must be received by 5.30 pm (Singapore time) on July 18 “or such later date(s) as may be announced from time to time by or on behalf of CMA CGM”.

NOL’s shareholders who already validly accepted the offer are to be paid within seven business days from June 9.

The shareholders who accept the offer after June 9 but before the closing date will be paid within seven business days from reception of their valid acceptance.

Tan Chong Lee, Temasek’s joint head of the portfolio management group, said in a statement: “Their [CMA CGM’s and NOL’s] complementary strengths will yield mutually beneficial results.

“We also note and welcome the commitment of CMA CGM to enhance Singapore’s position as a key maritime hub and grow Singapore’s container throughput volumes.”