Excerpts from the Journal of Commerce:
Alphaliner believes the failure of NOL’s shareholders to obtain a premium over its book value will have significant implications for the industry, especially for other potential sellers seeking to make an exit from the container shipping market.
“The discount to NOL’s book value reflects the impairment of the company’s asset values, compared to historical acquisition costs,” the analyst noted. “The value of the carrier’s containerships and container boxes will need to be discounted by between 20- 40 percent due to the reduction in asset values in the last few years.”
The analyst said CMA CGM will need to overcome significant challenges to make its largest-ever acquisition work. It will first need to obtain approval from anti-trust authorities in China, the EU and the U.S., a process expected to take between six and 12 months, with the offer for NOL conditional upon securing the requisite approvals before Dec. 7, 2016.