CMA CGM launches all-cash voluntary conditional general offer to acquire NOL

CMA CGM, a global leader in container shipping, today 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.

CMA CGM currently owns 10.5% of all NOL shares, and intends to delist and privatise NOL through the Offer. NOL's majority shareholders (Temasek Holdings (Private) Limited and its affiliates), which own 66.78% of all NOL shares, will tender all of their NOL shares in acceptance of the Offer.

Maybank Kim Eng Securities Pte. Ltd. (MKES) has been appointed as the independent financial adviser (IFA) to advise the directors of NOL who are considered independent for the purposes of the Offer (Independent Directors). The Offer Price is SGD 1.30 per NOL share in cash, which CMA CGM does not intend to increase.

The 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[1] and a 33% premium to NOL's 3-month volume-weighted average share price prior to 16th July 2015.

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%, a fleet of approximately 540 vessels[2] and a combined annual turnover of approximately US$21 billion[3].

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.

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