Singapore: China’s HNA Holding Group Co. is making an offer to acquire logistics firm CWT for nearly $1.4 billion.
In a regulatory filing on Sunday night, HNA announced that its subsidiary HNA Belt and Road Investments (Singapore) plans to purchase 600 million CWT shares at $2.33 apiece.
This values the acquisition deal at nearly $1.4 billion.The offer price represents a 13.11% premium over CWT’s last traded price of $2.06 on Wednesday.
HNA says the acquisition would help it become a leading logistics player and diversify its property investment portfolio.
Vendor shareholders holding a total 65.13% stake in the company have already given an irrevocable undertaking to sell their shares to the offeror.
They include CWT’s biggest 31.93% shareholder, C&P Holdings, an investment vehicle jointly controlled by chairman Loi Kai Meng with director Liao Chung Lik and businessman Lim Soo Seng, as well as CEO Loi Pok Yen, the chairman’s son, who holds a 5.16% stake.
HNA says it intends to keep CWT’s management team.HNA operates airlines, hotels and tourism businesses and is pursuing an aggressive global expansion strategy that has included everything from hotel chains to money managers.
Today’s Update is on the SGX Stock Market. To know about the all live market updates and its positions for BUY/SELL, Subscribe the 3 Days free Trial here: MMFSolutions.SG