China's HNA Holding to offer to buy Singapore logistics firm CWT Ltd for $1 bn

10 Apr 2017


China's HNA Holding Group Co yesterday said that it will make an offer to buy Singapore-listed logistics firm CWT Ltd for $1 billion.

In a filing to the Hong Kong Stock Exchange, HNA Holding said that its subsidiary HNA Belt and Road Investments (Singapore) Pte. Ltd would offer to pay S$2.33 per share, valuing the company at S$1.399 ($0.9962) billion.

The offer represents a 13.11 per cent premium over to CWT's Wednesday traded price of S$2.06.

HNA said that it intended to keep CWT's management team.

In August last year, CWT said that its controlling shareholder, C&P Holdings Pte Ltd, which holds a 32-per cent stake, was conducting a strategic review of its business and assets, which could lead to selling its stake in CWT.

C&P Holdings hired Credit Suisse Group AG and Singapore's DBS Group Holdings Ltd to conduct a strategic review.

C&P Holdings Pte Ltd is run by chairman Loi Kai Meng, who in 2004 acquired a controlling stake in CWT.

Loi and his family own close to 65 per cent of Singapore Stock Exchange-listed CWT.

An acquisition of 30 per cent or more would automatically trigger a mandatory offer for the entire company, according to Singapore takeover rules.

Founded in 1970, CWT is Singapore's largest homegrown logistics provider, employing around 6,000 people and generating sales of S$9.9 billion in 2015.

It provides commodity logistics, freight logistics, warehousing services, and defence procurement. It also has a division that specialises in the trading of non-ferrous ores and precious metals.

It has a global network connectivity to around 200 direct ports and 1,600 inland destinations.

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