CMA CGM Closes Voluntary General Offer for Singapore's NOL, Moves to Acquire Remaining 2.17%

CMA CGM has confirmed it now owns approximately 97.83 percent of NOL’s share capital, representing 2,547,264,348 shares.

CMA CGM S.A. (CMA CGM) Monday announced that its all-cash voluntary unconditional general offer for Neptune Orient Lines Limited (NOL) has closed, with CMA CGM now owning approximately 97.83 percent of NOL's share capital across 2,547,264,348 shares and prepared to take steps to acquire the remaining 2.17 percent.

The general offer, which closed at 5:30 p.m. on Monday, Singapore local time, saw CMA CGM put forth an offer price of S$1.30 ($0.94) per NOL share in cash.

"As announced on June 28, 2016, CMA CGM has crossed the compulsory acquisition ownership threshold in NOL and confirms that it intends to exercise its rights to compulsorily acquire all the NOL shares held by NOL shareholders who have not accepted the Offer, in accordance with the Companies Act (Chapter 50 of Singapore)," explained CMA CGM.

CMA CGM notes that Singapore Exchange Securities Trading Limited (SGX-ST) will suspend the trading of NOL shares, and CMA CGM will not take action in order for the suspension to be lifted.

"CMA CGM will compulsorily acquire all remaining NOL shares at a price equal to the Offer Price of SGD1.30 as soon as practicable," stated CMA CGM.

"Payment for NOL shares that are compulsorily acquired will be made in cash within 7 business days after the completion of the compulsory acquisition exercise, which is expected to take at least one month from its commencement."

As Ship and Bunker has previously reported, CMA CGM intends to delist NOL from the SGX-ST once the acquisition is fully complete and NOL becomes a wholly owned subsidiary of CMA CGM.