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 named APL.
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)