China’s HNA makes bid for Singapore logistics firm CWT

HNA Group HQ

HONG KONG (Reuters) – China’s HNA Holding Group Co. said it would make an offer to acquire Singapore-listed logistics firm CWT Ltd 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.

($1 = 1.4043 Singapore dollars)

(Reporting by Sijia Jiang. Editing by Jane Merriman)

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