NOL and KWE enter into a sale and purchase agreement for APL Logistics

Neptune Orient Lines Limited ('NOL)' and Kintetsu World Express, Inc. (KWE), jointly announced on February 17 that they entered into a sale and purchase agreement for NOL's logistics business, APL Logistics, for US$1.2 billion.

"This is a strategic move that will allow us to focus on improving our liner shipping business, while at the same time enabling APL Logistics to grow.
The transaction will also strengthen our balance sheet and unlock value for our shareholders,"said Ng Yat Chung, Group President and CEO of NOL.
NOL said that the divestment of APL Logistics follows a robust and highly competitive process, and that the net proceeds of the sale will be applied to strengthen its financial position, including repaying its borrowings. It further said that the divestment will allow APL Logistics to realize its full potential.

"The proposed transaction with KWE is expected to provide APL Logistics with the opportunity to expand its business with the backing of a company with strong fundamentals and a commitment to grow in the logistics space. We believe that KWE has the ability and the ambition to continue APL Logistics?growth strategy,"continued Mr. Ng.
 

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