CMA CGM S.A. launched an all-cash voluntary conditional general offer for all outstanding shares of Neptune Orient Lines Limited (NOL) other than those it already owns, controls or has agreed to acquire. This follows approvals by the relevant regulatory authorities in the European Union and China.
As of June 6, CMA CGM owned 10.5 per cent of all NOL shares, and intends to delist and privatize NOL through the Offer. NOL’s majority shareholders (Temasek Holdings (Private) Limited and its affiliates), which own 66.78 per cent of all NOL shares, will tender all of their NOL shares in acceptance of the Offer. The Offer Price is SGD 1.30 per NOL share in cash, which CMA CGM does not intend to increase.
CMA CGM 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 per cent, a fleet of approximately 540 vessels and a combined annual turnover of approximately US$21 billion. Leveraging the complementary strengths of the two entities, the combined group’s customers will have access to an enlarged and well-balanced shipping coverage across the strategic trades of global commerce, and to an extended range of products and services. CMA CGM further believes that the combination of the two groups would also create scale to enhance competitiveness and deliver sustainable performance.
CMA CGM attaches significant importance to Singapore and the region for the deployment of its strategy in Asia. The combined entity would reinforce Singapore’s leadership in the maritime and shipping sector as the city-state seeks to increase maritime services and transportation volumes, including committing more volumes through Singapore. CMA CGM will also contribute to reinforce Singapore as a center of excellence in the field of maritime activities as CMA CGM plans to use Singapore as a key hub in Asia. In this regard, CMA CGM plans to establish its regional head office in Singapore.
On June 27 CMA CGM announced it had acquired ownership of more than 90 per cent of NOL’s shares, and that it intended to seek delisting of the shares from the Stock Exchange.