18 Jul CMA CGM closes on NOL takeover offer
CMA CGM Monday closed its all-cash offer for NOL after acquiring shares equivalent to approximately 97.83 percent of the Singapore-based parent of container shipping line APL.
“Accordingly, the offer is no longer open for acceptance. Any acceptances received after 5:30 p.m. Singapore time on July 18, 2016 will be rejected,” the French ocean carrier said in a statement.
With the public float of NOL shares below the minimum threshold of 10 percent, the Singapore Exchange will suspend the trading of NOL shares and CMA CGM, which is privately held, said it does not intend to take any steps for the suspension to be lifted.
CMA CGM said it had crossed the compulsory acquisition ownership threshold in NOL on June 28 and confirmed it intends to exercise its rights to compulsorily acquire all the shares held by NOL shareholders who have not accepted its offer.
“CMA CGM will compulsorily acquire all remaining shares at a price equal to the offer price of 1.30 Singapore dollars ($0.96) as soon practicable,” the Marseille-based carrier said.
CMA CGM will be a member of the Ocean Alliance along with Evergreen Line, Orient Overseas Container Line and Cosco China Shipping from April.
The alliance will have the largest market share on the trans-Pacific (40 percent) and Asia-Europe (35 percent) trades even with the recent addition of Hyundai Merchant Marine to the 2M and United Arab Shipping Company to THE Alliance via its Hapag-Lloyd merger.