Singapore-based Neptune Orient Lines Limited (NOL) has sold its logistics business, APL Logistics Ltd (APLL), to Kintetsu World Express, Inc for USD 1.2 billion.
Upon completion of the transaction, 50.05% of the shareholding in APL Logistics Vascor Automotive Private Limited (Vascor India), an India based 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 at 26 December 2014, the net book value and net tangible asset value of Vascor India were USD7.3 million and USD6.5 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, NOL said.