NOL to reward shareholders with $794 million

NOL to reward shareholders with $794 million    APL parent company Neptune Orient Lines, announced today a capital reduction exercise that will return approximately S$1.34 billion ($794 million) to its shareholders via a cash distribution of S$0.92 (55 cents) per share.
   The capital reduction will be made out of existing cash, or near cash resources, and proceeds from the drawdown of credit facilities made or to be made available to NOL.
   Temasek Holdings, the Singapore government-controlled investment company is the majority shareholder in NOL, owning approximately two-thirds of the shares. Temasek, also the owner of global port operator PSA International, has recently invested about $174 million increasing its share in P&O to 4.1 percent.
   NOL said that as of Sept. 23, it had a net cash position of $190 million.
   “The group’s balance sheet, following the capital reduction, is expected to remain strong. The financial resources available to the group will be sufficient for its foreseeable near term operating and investment needs and to meet its budgeted capital expenditures in 2006, which are estimated to be approximately $400 million,” NOL said in a statement.
   NOL has resisted getting involved in any merger or acquisitions. But David Lim, NOL president and chief executive officer, hinted that the capital reduction will not prevent it from looking for investment opportunities. “The strength of NOL’s balance sheet will enable us to continue to undertake strategic investments to grow both our liner shipping and logistics businesses,” Lim said.