Shares in Neptune Orient Lines (NOL) yesterday surged to their highest in almost seven months, after the container shipping
giant said at the weekend that it is in exclusive talks for a potential acquisition by France’s CMA CGM.
NOL shares rose by as much as 6.25 per cent to S$1.19, the highest intraday level since April 29, before giving up some gains on late profit-taking to end at S$1.17, or a 4.5 per cent increase. The closing price values NOL at just over S$3 billion.
NOL, whose ships operate under the APL brand, said on Saturday that its biggest shareholder — part of Singapore investment fund Temasek Holdings — had granted CMA CGM exclusivity “with respect to a potential acquisition of NOL by way of pre-conditional voluntary general offer”. CMA confirmed NOL’s statement on Sunday. If consummated, the deal would bring the French shipper close in size to Mediterranean Shipping Company (MSC), the market No 2.