The move will allow NOL to focus on improving its liner shipping business, according to group president and chief executive officer Ng Yat Chung. Net proceeds of the sale will be used to strengthen NOL's balance sheet and repay borrowings. "We believe that KWE has the ability and the ambition to continue APL Logistics' growth strategy," Ng said. In fiscal 2014, APL Logistics contributed 19 percent of the NOL Group's consolidated revenues and 25 percent of its core earnings before net finance expense, tax, depreciation and amortization. Satoshi Ishizaki, group vice president and chief executive officer of KWE, said his company intends to keep the headquarters of APL Logistics in Singapore and to operate it as a separate unit. The deal is contingent on approval by NOL shareholders and regulators.

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