China's HNA offers to buy Singapore's CWT for $1 billion
HONG KONG: China's HNA Holding Group Co. (0521.HK) said it would make an offer to acquire Singapore-listed logistics firm CWT Ltd (CWTD.SI) for $1 billion.
The Chinese conglomerate said in a filing to the Hong Kong Stock Exchange late on Sunday that its subsidiary HNA Belt and Road Investments (Singapore) Pte. Ltd would offer to purchase 600 million CWT shares at S$2.33 apiece, which values the deal at S$1.399 ($0.9962) billion.
Reuters reported in May 2016 citing sources that HNA Group was in talks to acquire CWT for $1 billion.
HNA, one of China's most acquisitive conglomerates with businesses spanning aviation to financial services, has been snapping up assets overseas.
CWT, incorporated in 1970 as a private arm of the Port of Singapore Authority, has interests which include logistics services, commodity marketing, financial services and engineering services.
The offer represents a 13.11 percent premium over CWT's last traded price of S$2.06 on Wednesday. HNA said in the filing that it intended to keep CWT's management team.
It said the acquisition would help it to leverage an established international platform, become a leading logistics player and diversify its property investment portfolio.