Temasek-linked shipping company Neptune Orient Lines NOL on Tuesday agreed to sell its logistics business APL Logistics to Japan’s Kintetsu World Express for $1.2 billion.
The loss-making shipping company has been battling a cyclical downturn and the sale will enable it to strengthen its financial position and repay borrowings, halving its net gearing from 2.25 times to 1.08 times.
In a statement, NOL said the divestment followed a robust and highly competitive process and that the divestment would allow APL Logistics to “realise its full potential.
NOL is 65.4% owned by Singapore’s state investment firm Temasek Holdings. Sources with dealings with the Singaporean state investment firm said it had been looking...