Chinese conglomerate HNA Group Co. has made a formal offer to buy all the shares of Singapore-listed logistics and warehousing firm CWT Ltd.
HNA unit HNA Belt and Road Investments (Singapore) Pte Ltd offered S$2.33 per CWT share, valuing the deal at S$1.399 billion (US$1.04 billion).
CWT, founded in 1970 as a private arm of the Port of Singapore Authority, provides commodity logistics, freight logistics and warehousing services. It also has a division that specializes in the trading of nonferrous ores and precious metals, as well as an engineering and financial-services division.
HNA puts itself on the map as major logistics player
As of the end of last year, CWT Group managed about 10.3 million square feet of owned and leased warehousing space in Singapore.
HNA expects the acquisition of CWT to benefit the Singapore company from China's "Belt and Road Initiative," an ambitious infrastructure-investment plan spanning much of the globe.
HNA first announced its intent to buy CWT in April, but was waiting for the go-ahead from its shareholders. That approval came in a general meeting earlier this month, HNA said.
The company expects the acquisition to help it become a leading logistics player and diversify its property investment portfolio.
Nol van Fenema