Singapore's NOL sells logistics arm to Kintetsu for $1.2 bn

Singapore container shipping firm Neptune Orient Lines (NOL) said Tuesday it is selling its logistics business to Japanese freight company Kintetsu World Express, Inc. for $1.2 billion. NOL said in a filing with the Singapore Exchange its decision to sell APL Logistics would allow it to focus on its core liner shipping business. Proceeds from the sale will be used to strengthen the company's financial position, including repaying debts, said NOL, Southeast Asia's biggest container line. NOL, which is 65 percent owned by Singapore state-linked investment firm Temasek Holdings, reported a net loss of $260 million last year, widening from the $76 million loss it reported in 2013. The transaction is expected to be completed by mid-2015, the company said. Kintetsu World Express group president and chief executive Satoshi Ishizaki said the purchase of APL Logistics fitted with the firm's strategy of strengthening its international presence especially in the US and Asia where APL Logistics has a strong presence.