NOL hopes port deal finalized this month

NOL hopes port deal finalized this month

SINGAPORE (Dow Jones): Neptune Orient Lines Ltd. of Singapore said Tuesday it expects a final decision on the tender results for a container port project at Tanjung Priok, in Indonesia at the end of June.

NOL's American President Lines unit is leading a consortium bid for 48.52 percent of Koja Container Terminal.

"We understand no final decision will be made until the shareholders' meeting at the end of the month," said Sarah Lockie, NOL's global head of communications, in a written statement Tuesday.

Responding to an Antara news agency report Monday that Hong Kong-based Hutchison Port Holdings had won the bid, Lockie said: "NOL hasn't received any official notification on this bid."

According to the report, Hutchison Port, a unit of Hutchison Whampoa Ltd., made a bid of around US$147 million. It didn't quote any sources.

Vickers Ballas Holdings, nevertheless, reaffirmed its buy rating in the company, adding that oil prices are showing signs of easing, which is good news for NOL.

The Koja terminal is 51 percent owned by state-run PT Pelabuhan Indonesia, or Palindo, while the remaining shares are owned by the Humpuss Group, controlled by Hutomo Mandala Putra, former President Suharto's youngest son.

NOL confirmed that APL is bidding for the stake being held by the Humpuss Group.

The NOL consortium includes the Singapore government's investment arm, Temasek Holdings Ltd., and Singapore-listed Indonesian shipping company, Samudra Shipping Lines Ltd. (P.SDS).

If successful, NOL will be the second Singapore company to own a chunk of a distressed Indonesian company.

Earlier in the year, auto distributor Cycle & Carriage Ltd. successfully bid for a cornerstone PT Astra International Ltd. Its consortium included the Government of Singapore Investment Corp.