NOL says not made any decision on company's potential sale, shares jump

Exterior of Neptune Orient Lines (NOL).
Exterior of Neptune Orient Lines (NOL).PHOTO: ST FILE

SINGAPORE (REUTERS) - Neptune Orient Lines (NOL) said it has not made any decision on a potential sale of the company, nor entered into any agreement, after media reports that Temasek Holdings had put the shipping company up for sale.

Its shares jumped as much as 10 per cent to a six-week high after trading on the Singapore Exchange opened on Monday. The counter was trading at 94 cents, up 6.5 cents or 7.4 per cent, at around 10:45am.

Singapore state investor Temasek, which owns nearly 67 per cent of NOL, had hired a bank to seek buyers for the business that made a net loss in five of the past six years, sources told Reuters last week.

"The company has a duty to consider its options to maximize shareholder value as part of its conduct of normal business," NOL said in a statement late on Sunday.

"The company has not made any decision with respect to, and has not entered into any agreement for, a potential sale of the company and there is no assurance that any agreement for the sale of the company will be entered into," it said.

The company advised investors to exercise caution when dealing in its shares and other securities.