SINGAPORE (Nov 23): OCBC advises caution after Neptune Orient Lines rises Monday on an announcement that the container shipper and its 67% owner Temasek have entered into an exclusivity agreement with French shipping firm CMA CGM for a potential sale.

“Temasek is most unlikely to sell below book value,” OCBC says, pointing to its $1.38 per share value of Neptune Orient at the end of the third quarter, and its fleet of new ships.

OCBC thinks CMA CGM may be willing to pay a premium to not only to increase its scale, but more importantly to increase its share in the east-bound transpacific market.

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