|Pic Credits : worldmaritimenews.com|
NOL has requested for a trading halt this morning, pending a corporate announcement.
Recall that today is the deadline for CMA CGM to complete due diligence and make a definitive offer with NOL and majority shareholder, Temasek.
Bloomberg last week reported that CMA CGM is in talks with lenders to finance this transaction and the banks involved include BNP Paribas SA, HSBC Holdings Plc and JPMorgan Chase & Co.
No indicative price
There is currently no official indicative price provided by both potential buyer and the sellers.
While we have been advising investors stay cautious of the potential downside if the deal falls through given the gloomy container shipping outlook [HOLD; FV:S$0.96], we have also been reiterating our view that Temasek will be unlikely to sell at a discount to NOL's book value as at end-3Q15 (~S$1.38/share), if any deal goes through.
Source : OCBC Investment Research
Labels: Neptune Orient Lines (NOL), Shipping Sector