Neptune Orient may sell logistics business to improve finances

Singapore: Singapore-based Neptune Orient Lines (NOL) may sell its logistics business to CJ Korea Express, South Korea’s biggest courier delivery company, in an effort to improve its finances.

CJ Korea Express said in an exchange filing today that it is considering options relating to Neptune Orient’s APL Logistics unit, either through an acquisition or forming a strategic alliance.

Reports suggest the sale of APL Logistics may commence by the end of this month and could raise as much as $1bn for NOL. APL Logistics accounted for 18% of NOL’s sales last year.

NOL, southeast Asia’s biggest container line, is expected to post a fourth straight annual loss this year, due to slow economic growth and a weak container shipping market. In the past two years, the company has sold its main office building and some vessels to cut costs.

The company said in August that it was considering options for APL Logistics, including a sale or initial public offering. [16/10/14]