SINGAPORE (Dec 8): Minority shareholders in Singapore-listed shipper Neptune Orient Lines should accept a cash buyout offer for the company by France's CMA CGM, CIMB says.

The offer, made at $1.30 a share, is 6.1% above NOL’s closing price before it was made. CIMB notes that CGM's offer, which includes the 67% of shares owned by Singapore state-investment fund Temasek Holdings and its units, “is almost certain to succeed” and without the offer “NOL's shares will languish.”

CIMB points to the weak outlook for the shipping sector, judging NOL “unprepared for the compeittive future,” while becoming part of CMA CGM could bring advantages of scale.

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