NOL buyout: Some takeaways from the press conference

Neptune Orient Lines (NOL) said on Monday that CMA CGM has offered to buy it for S$3.4 billion, at a 6.1 per cent premium over the last traded price.

NOL's majority shareholder, Temasek Holdings, fully supports the transaction and will be selling their shares to CMA CGM.

Here are some highlights from the press conference on Monday:

4.23pm:

4.25pm:

4.49pm:

Also, CMA CGM will eventually consider a listing of the combined entity after it acquires NOL, vice-chairman Rodolphe Saade said at the press conference, according to a Reuters report. In reference to the future listing, Mr Saade had reportedly said: "Why not Singapore."

Commenting on the proposed acquisition, David Gerald, president of the Securities Investors Association (Singapore) said on Monday: "Whilst it is sad to see another Singapore flagship company likely to be sold, I note the positive aspects in this offer, which shareholders will, no doubt take into consideration in determining the offer. These are that the proposed cash acquisition of NOL at S$1.30 represents a 49 per cent premium to NOL's share price, it is fully financed and more importantly, Temasek, NOL's majority shareholder, (according to the joint press statement) fully supports the transaction and have irrevocably undertaken to tender all of their shares into the offer."

"It is also positive that CMA CGM will establish its regional head office in Singapore, which will reinforce Singapore's leadership position in the shipping industry. Shareholders will , of course, await the IFA (independent financial advisor's) report on the reasonableness of the offer and vote on it," he added.