August 19, 2014 / 10:07 PM / 3 years ago

Singapore shipper Neptune Orient looks to sell logistics unit-sources

NEW YORK, Aug 19 (Reuters) - 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)

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