NOL and KWE enter into a sale and purchase agreement for APL Logistics
Neptune Orient Lines Limited and Kintetsu World Express, Inc., jointly announced today that they have entered into a sale and purchase agreement for NOL’s logistics business, APL Logistics, for US$1.2 billion, the company said in its press release.
“This is a strategic move that will allow us to focus on improving our liner shipping business, while at the same time enabling APL Logistics to grow. The transaction will also strengthen our balance sheet and unlock value for our shareholders,” said Ng Yat Chung, Group President and CEO of NOL.
NOL said that the divestment of APL Logistics follows a robust and highly competitive process, and that the net proceeds of the sale will be applied to strengthen its financial position, including to repay its borrowings. It further said that the divestment will allow APL Logistics to realise its full potential.
This transaction is subject to NOL shareholder and relevant regulatory approvals.
Citi and HSBC acted as financial advisors to NOL during the transaction. KWE’s financial advisor is Nomura Securities.
