NOL clarifies reports on plans to sell logistics business

Exterior of Neptune Orient Lines. Following media reports on Wednesday that Neptune Orient Lines (NOL) is planning to sell its logistics business, the Singapore-listed shipping company said such considerations are "preliminary and exploratory in
Exterior of Neptune Orient Lines. Following media reports on Wednesday that Neptune Orient Lines (NOL) is planning to sell its logistics business, the Singapore-listed shipping company said such considerations are "preliminary and exploratory in nature". -- PHOTO: THE BUSINESS TIMES FILE

SINGAPORE - Following media reports on Wednesday that Neptune Orient Lines (NOL) is planning to sell its logistics business, the Singapore-listed shipping company said such considerations are "preliminary and exploratory in nature".

Clarifying the report in a filing to the Singapore Exchange, NOL said it "continually evaluates all available options to improve the strategic positioning and performance of its businesses".

"These include considerations of a potential sale or initial public offering and listing of its logistics business as a separate, stand-alone unit from NOL," the company added.

It also stressed that "there is no assurance that any definitive transaction for the sale or an IPO of NOL's logistics business will be concluded".

Reuters reported early Wednesday morning that NOL, which is 67 per cent-owned by Temasek Holdings, is looking to sell its logistics business for more than US$750 million (S$935 million).

Shares in NOL jumped 3 per cent to their highest level in more than three months after the news.