Neptune Orient Lines said it is exploring a sale or public listing of its APL Logistics division after Reuters reported the company is hoping to sell the division for $750 million or more.
Citing unnamed sources, Reuters said Singapore-based NOL has hired banks to assist it this fall in the process of finding a buyer for APL Logistics.
NOL issued a response to the news report in which it said it "continually evaluates all available options to improve the strategic positioning and performance of its businesses. These include considerations of a potential sale or initial public offering and listing of its logistics business as a separate, stand-alone unit from NOL."
NOL is also the parent company of the liner shipping company APL, formerly American President Lines. About 65 percent of its company is owned by the Singapore government's investment company Temasek.
"These considerations are preliminary and exploratory in nature. There is no assurance that any definitive transaction for the sale or an IPO of NOL's logistics business will be concluded," NOL said, adding that investors should "exercise caution."
Earlier this month, NOL said APL Logistics had second-quarter revenue of $379 million, a 7-percent improvement over the same period a year earlier. It added that revenue was higher across all regions.
About 63 percent of APL Logistics' revenue comes from the Americas region, 28 percent from Asia and the Middle East, and 9 percent from Europe.
Beat Simon, the president of APL Logistics, said that the company was in the final stages of a strategic review. To grow its business, the company said it planned to focus on selected industry verticals; invest and expand its sales capability; improve its operational platform; and build a robust merger and acquisition pipeline.