Shareholdings in Neptune Orient Lines (NOL) have risen significantly, amid rumours the South East Asian shipping company is considering the sale of its logistics business, according to Bloomberg.
Share prices jumped 4.1 per cent to S$1.02 (US$0.81) on Wednesday (20 August), the sharpest increase in almost 12 months. NOL’s stock has fallen 9.3 percent this year, with the company expected to post a fourth straight annual loss this year.
“A sale could unlock value within the group,” Derrick Heng, an analyst at Maybank Kim Eng Research in Singapore told Bloomberg. “It could use the proceeds to pay down its high debt, reinvest in new vessels for longer-term growth.”
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