| NEW YORK
NEW YORK Aug 19 Singapore's Neptune Orient
Lines Ltd is looking to sell its APL Logistics
division with the hope of fetching more than $750 million,
according to people familiar with the situation.
Shipping and logistics company Neptune is comprised of two
major divisions - APL Logistics, a global freight management and
logistics business, and a separate container shipping business
Neptune plans to launch a process in the fall to find a
buyer for APL Logistics and has hired banks to assist with that
effort, the sources said, asking not to be named.
A representative for Neptune had no immediate comment.
The logistics business had earnings before interest, taxes
depreciation and amortization of $74.5 million according to the
division's 2013 financials.
Neptune hopes to fetch between 10 and 12 times that amount
in a potential sale, or between $750 million and $900 million,
according to the people familiar with the matter. However,
buyers are likely to value the business at closer to $600
million, the sources said.
Despite APL Logistics' positive performance in 2013, the
parent company posted a net loss of $76 million on $8.8 billion
of total revenue.
The APL Logistics business accounted for 18 percent of
Neptune's total 2013 revenue.
(Reporting by Soyoung Kim and Mike Stone, editing by G Crosse)