Singapore Shipping Line NOL a Takeover Target?
Singapore's Neptune Orient Lines (NOL) may be shaping up as a takeover candidate, a report in Bloomberg said.
The appeal of the shipping company that helped cement Singapore's status as a global trade hub has increased after it agreed to sell its logistics unit last month for US$1.2 billion to cut debt.
Possibility of a sale may help Temasek Holdings Pte, the Singapore state's Sovereign Wealth Fund (SWF) that controls Neptune Orient, bolster returns. The $1.8 billion container line’s natural partner would be Orient Overseas International Ltd., controlled by the family of Hong Kong’s first post-colonial leader, according to Credit Suisse Group AG.
Analysts project the company, which moves goods globally, will benefit from the U.S. economic recovery and return to profit in 2015 after four straight years of losses.
Recently, NOL has sold APL Logistics to Kintetsu World Express for $1.2 billion in a stunning deal that gives the Singapore-listed group a net gain of more than $900 million.
APL, NOL’s container shipping business, narrowed its year-on-year Core EBIT loss by 64% to US$37 million in the fourth quarter, attributing it to its efforts to manage costs and increase operational efficiencies.
NOL Group reported a fourth quarter 2014 Core EBIT (Earnings before Interest, Taxes and Non-Recurring Items) loss of US$17 million, a year-on-year reduction of 79%. On a full year basis, the Group posted a Core EBIT loss of US$76 million and a net loss of US$260 million.
