NOL To Buy GATX Logistics For $210M

Tuesday, January 09, 2001
Shares of Singapore shipping and logistics firm Neptune Orient Lines (NOL) rose 7.5 percent on Tuesday, buoyed by its deal to buy U.S.-based GATX Logistics for $210.5 million in cash. "They (NOL) have always said logistics is going to be a growth area for them. So, having made a significant acquisition, people tend to look at it positively because they are moving in the right direction," said Seah Hiang Hong, head of research at Kim Eng Securities. NOL said the acquisition would boost revenues for the group's unit APL Logistics -- the vehicle used to buy GATX -- by 70 percent or more than $300 million. GATX, owned by GATX Corp. until last June, is the second largest warehouse-based contract logistic company in the United States with about 21 million sq ft of warehousing space. NOL said the completion of the deal was expected to take place during the first quarter of this year. An analyst at a local bank said profit figures for the U.S. company were not available, but the price paid appeared reasonable. "It is a fair price on the assumption that the company makes a net margin of about five to seven percent, which would equate it to an entry price-to-earnings multiple of about 18 times, which is fair for a logistics company," the analyst said. "We have a fair value of S$2.30 and have maintained a buy."
Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Boxco Moves Longest Column through Mumbai Port

Boxco Logistics has set the bar high yet again, by moving the LONGEST COLUMN EVER that was transported in and out of Mumbai Port. It all started in the industrial

BMT Completes Hong Kong Port Study

BMT Asia Pacific, a subsidiary of BMT Group Ltd, is pleased to announce the completion of The Strategic Development Plan for Hong Kong Port 2030 (HKP2030) on behalf of the Hong Kong Government.

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Finance

EU Bans Crimea Investment, Targets Oil, Cruise Sectors

Measures take effect on Saturday; aim is to keep pressure on Russia over Ukraine. The European Union banned investment in Crimea on Thursday, halting European

Transpacific Box Shippers Plan Freight Rate Rise

A container shipping organisation urged companies on Wednesday to raise Asia-U.S. freight rates by at least $600 per 40-foot container (FEU) from Jan. 15, corresponding to an increase of 26.

Container Volumes on the Rise in South Carolina

Container volume up 13 percent at South Carolina Ports Authority; Charleston benefiting from federal appropriations    The SC Ports Authority announced another

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2525 sec (4 req/sec)