NOL shareholders should snap up CMA CGM’s offer, say analysts

Share suspension could be on the horizon.

It’s time for Neptune Orient Lines (NOL) shareholders to fork over their stake, as analysts share that dissenting unitholders face the possibility of having their shares suspended or delisted.

According to a report by OCBC, CMA CGM’s voluntary general offer (VGO) for NOL was declared unconditional on 9 June 9 after Temasek tendered its NOL shares representing about 66.8% stake in acceptance of the VGO, which closes on 18 July 2016.

OCBC notes that under SGX rules, NOL shares will be suspended for trading when public float falls 10%, and CMA CGM plans to delist NOL.

Based on the offer, CMA CGM’s right for compulsory acquisition will be triggered when it bags at least 90% of the total issued NOL shares other than those it already owns as at date of offer, which is 10.5%.

Hence, if CMA CGM’s total stake in NOL exceeds around 91.1%, it will exercise its right to compulsorily acquire all the remaining NOL share from dissenting unitholders. It is possible, however, that shareholders who did not accept the offer may end up with shares of suspended or delisted NOL if CMA CGM stake is above 90% but below 91.1%.

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