NOL

NOL: (S$1.225) Time to exit with CMA CGM's $1.30/share offer?
The world’s number three (by capacity) container shipping company, CMA CGM has offered to snap up Neptune Orient Lines (NOL) for $3.4b (US$2.4b), or $1.30/share.

The deal is expected to be complete by mid-2016, subject to regulators' approval.

Substantial shareholder Temasek Holdings has given its undertaking to sell its 66.8% stake in NOL, on condition that the deal is completed within 12 months.

The offer price is 6.1% above the last close and represents a slight discount to NOL’s NAV/share of $1.36 (US$0.97).

However, market observers note that the five container terminals in the group’s portfolio have not been marked to market and could therefore mean the group's NAV is undervalued.

As at end-3Q15, NOL operates 89 vessels and has five container terminals in the US, Japan and Taiwan. It also has stakes in terminals in Vietnam, China, and Thailand.

That being said, the offer does provide for a good exit plan for weary investors who have now seen consecutive losses for the past eight quarters amid the industry structural decline.

Trading in NOL's counter is currently halted pending an official announcement to resume trading.