NOL gets slap on the wrist

Singapore - NOL was reprimanded by the Singapore Exchange (SGX) for failing to make timely announcements to address market rumours that NOL was considering a rights issue.

NOL shares were hit earlier this month by market rumour that the container shipping group was considering a rights issue of more than US$250 million, but NOL issued a statement at the time saying that its policy was not to comment on market rumour.

However, the shipping giant issued another statement three days later confirming that it was not undertaking a rights issue. This alerted SGX which then said NOL was in breach of its listing rules.

SGX said NOL's first announcement was not sufficiently explicit, and failed to make reference to possible fundraising. SGX said the breach was serious enough to warrant a public reprimand, as full and timely disclosure is crucial to the operation of a fair, orderly and transparent market.

NOL said it has taken note of SGX's statement. It added that both statements it made were appropriate and reflected its best judgement under the circumstances.