SINGAPORE: French container shipping firm CMA CGM said on Tuesday (Jun 28) it will proceed to delist Neptune Orient Lines (NOL), after it crossed the 90 per cent ownership threshold in the Singapore company.
Following its all-cash voluntary conditional general offer for NOL which was launched on Jun 6, CMA CGM now owns 2,361,044,044 shares, representing about 90.68 per cent of NOL’s share capital.
With the public float of NOL shares now falling below the minimum threshold of 10 per cent, the Singapore Exchange Securities Trading may suspend the trading of NOL shares at the close of the offer, CMA CGM said.
“In the event of a trading suspension, CMA CGM does not intend to take steps for the suspension to be lifted,” the company said.
CMA CGM also said it will exercise its right of compulsory acquisition to acquire all NOL shares held by shareholders who have not accepted the offer, should it acquire more than 91.05 per cent of NOL shares.
The French company is offering NOL shareholders S$1.30 per share in cash, and has said it will not raise the offer price.
The takeover offer marks CMA CGM’s biggest ever acquisition and comes as container lines seek to cope with a severe market downturn through greater scale. The European Commission gave its approval for the deal at the end of April.