French container delivery firm CMA CGM has launched an all-cash supply for all excellent shares of Singapore-listed Neptune Orient Lines.

The supply worth is SGD 1.30 in money per NOL share, which CMA CGM referred to as a good worth and a suggestion that the corporate doesn’t intend to extend.

The provides comes after approval by regulatory authorities within the European Union and China.

CMA CGM at present owns 10.5% of all NOL and plans to delist and privatise NOL by the supply. NOL’s present majority shareholder is Temasek Holdings and its associates, proudly owning 66.78% of the corporate.

“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 and a combined annual turnover of approximately US$21 billion,” CMA CGM stated in a press launch relating to the supply. “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.”

CMA CGM stated the supply is reflective of its dedication to Singapore and its intentions to strengthen Singapore’s management within the maritime and delivery business.

“CMA CGM attaches significant importance to Singapore and the region for the deployment of its strategy in Asia,” CMA CGM’s press launch learn. “The combined entity would reinforce Singapore’s leadership in the maritime and shipping sector as the city-state seeks to increase maritime services and transportation volumes, including committing more volumes through Singapore. CMA CGM will also contribute to reinforce Singapore as a center of excellence in the field of maritime activities as CMA CGM plans to use Singapore as a key hub in Asia. In this regard, CMA CGM plans to establish its regional head office in Singapore. This consolidation of CMA CGM’s longstanding presence in Asia in Singapore aims at providing efficient and quality services to customers in the region.”

Rodolphe Saadé, Vice-Chairman of CMA CGM, stated the supply represents a good and engaging worth for NOL, particularly contemplating the present challenges inside the container delivery market.

“6 months after the announcement, and after receiving the relevant authorizations, CMA CGM today opens its Offer for NOL shares,” stated Saadé. “We offer each and every NOL shareholder SGD 1.30 per share in cash. In a particularly challenging international context in the shipping sector, our Offer fully and fairly values NOL. We believe this is an attractive Offer for all shareholders, as it was for Temasek and its affiliates, which have committed to tender their 66.78% stake.”

NOL has really helpful that until shareholders have a greater supply hiding up their sleeve, they need to take the cash and run. 

“The Independent Directors, having considered carefully the fairness opinion rendered to the NOL board by Citigroup Global Markets Singapore Pte. Ltd., as NOL’s financial adviser in this transaction; the terms and conditions of the Offer; as well as the advice given and recommendation made by MKES as the IFA, concur with the recommendation of MKES in respect of the Offer. Accordingly, they recommend that NOL shareholders accept the Offer, unless NOL shareholders are able to obtain a price higher than the Offer Price on the open market, taking into account all brokerage commissions or transaction costs in connection with open market transactions,” stated NOL non-executive impartial Chairman, Kwa Chong Seng.

CMA CGM, based and led by Jacques R. Saadé and headquartered Marseille, France, is the world’s largest private-held container delivery group with 450 vessels calling at 400 ports world wide. In 2015, the corporate carried 13 million TEUs.

Acceptance of the supply is due by July 4, 2016.