CMA CGM is slowly building a stake in Neptune Orient Lines (NOL) for less than the price pre share it has offered in a planned takeover deal.

Since announcing a takeover offer of SGD1.30 per share for NOL two weeks ago, pending regulatory approval CMA CGM has been making open market purchases of NOL shares in the SGD1.22 – 1.24 per share range. The French line now has a 0.77% stake in NOL according to Singapore Exchange disclosures.

NOL’s main shareholder Temasek Holdings has agreed to sell its 66.84% stake at SGD1.30 per share, which assuming regulatory approvals are granted, will trigger a mandatory takeover offer at the same price for all remaining shares in the company.

However, the required regulatory approvals are not expected till mid-2016, with a general offer then taking a further 28 days after that. CMA CGM has said it will de-list NOL if it gains more than 90% shareholder approval.

Given the length of time until an offer is made NOL has been trading at a discount to the offer price.