APLL and Kintetsu World Express deal complete
Singapore-based Neptune Orient Lines Limited (NOL) completed the sale of its logistics business, APL Logistics (APLL), to Kintetsu World Express (KWE) for an aggregate purchase price of USD 1.2 billion on 29 May.
The amount, however, is subject to adjustments for the net cash and net working capital of APLL and its subsidiaries on the completion date. NOL will announce the final purchase price after such adjustments have been determined.
Upon completion of the deal, 50.05% of the shareholding in APL Logistics Vascor Automotive Private Ltd (Vascor India), a company that transports automobiles in containers in India, will be held indirectly by APLL and other third parties. NOL will hold the remaining 49.95% interest in Vascor India through its wholly-owned subsidiary, NOL Liner (Pte) Ltd.
Vascor India will cease to be a subsidiary of NOL and will become an associated company of NOL. Based on the unaudited financial position of Vascor India as of 26 December 2014, the net book value and net tangible asset value of Vascor India were USD 7.3 million and USD 6.5 million respectively.
The change in Vascor India’s status from a subsidiary of NOL to an associated company of NOL is not expected to have a material effect on the net tangible assets or earnings per share of the NOL Group for the current financial year.