Neptune Orient Lines Ltd. (NPTOF.PK, NPTOY.PK) announced that it has planned to raise gross proceeds of about S$1.437 billion through renounceable underwritten rights issue of new ordinary shares. The company expects net proceeds, after deducting estimated expenses, to be about S$1.401 billion.
Neptune Orient Lines has planned to issue about 1.11 billion shares at S$1.30 per share, offering three new shares for every four existing shares.
The company specified that Temasek Holdings (Private) Ltd will subscribe to its pro-rata entitlement of 67.43%. The board of directors believes that the Rights Issue will assist the company and its subsidiaries to repay its debt, strengthen the balance sheet and enhance the financial flexibility and allow it to seize investment opportunities.
The company intends to use proceeds for possible acquisitions and general corporate and working capital purposes, as well as for repayment of debt.
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