Neptune Orient Lines Limited (NOL) today announced the conclusion of its share placement exercise, raising US$308 million through an overnight placement of 236 million shares through its placement and underwriting agent Credit Suisse First Boston.

The placement was launched yesterday on the back of strong third quarter results showing a net profit so far this year of US$295 million. The placement was facilitated by a scrip lending arrangement with NOL’s single largest shareholder, Temasek Holdings.

Mr. David Lim, CEO of NOL, said, “The proceeds will be used to repay debt and lower our net gearing to about one. A strengthened balance sheet will enhance NOL’s competitive position, enabling us to make the most of any future opportunities that may arise, and to manage the impact of any future industry volatility. This will allow us to continue to grow, to meet customer needs, and increase shareholder value.”

The placement was executed at S$2.32 per share, representing a 4.4% discount to the weighted average price of S$2.42 for shares traded on Friday, 7 November.

The placement will increase the existing issued and paid up share capital of the company by approximately 19.9% from S$1,187,184,876 comprising 1,187,184,876 ordinary shares as of 10 November 2003 to S$1,423,184,876 comprising 1,423,184,876 ordinary shares.

The placement will also increase the Group’s net tangible assets backing per share from 57.1 US cents as of 19 September 2003 to 69.3 US cents. The net asset value per share will increase from 72.3 US cents as 19 September to 82.0 US cents as of today.

About NOL

NOL is a global transportation and logistics company engaged in shipping and related businesses. Its container transportation arm, APL, provides customers around the world with container transportation services that combine high quality inter-modal operations with state-of-the-art information technology while APL Logistics provides end-to-end supply chain management services through its global network.

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THIS PRESS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION. “UNITED STATES” MEANS THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES, AND THE DISTRICT OF COLUMBIA.
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