HNA will make the offer through its subsidiary HNA Belt and Road Investments (Singapore) with an offer consideration of SGD2.33 for each share of Singapore-listed CWT, representing a premium between 13.11-16.55% over the transacted prices of CWT over the past 12 months on the Singapore Exchange (SGX).
HNA said the voluntary general cash offer for CWT is in line with the group’s investment and development strategy that focuses on merger and acquisition opportunities in international markets.
“In particular, the HK Group (HNA and its subsidiaries) seeks merger and acquisition targets in sectors including finance and logistics transport facilities while closely monitoring the economic and trade development situation in the One Belt One Road initiative, Southeast Asia and other regions,” HNA stated.
Singapore-listed CWT provides integrated logistics solutions with interests in logistics services, commodity marketing, financial services and engineering services. As at 31 December 2016, CWT had a global freight forwarding network with connectivity to around 200 direct ports and 1,600 inland destinations.
CWT also manages around 10.3m sq ft of owned and leased warehousing space in Singapore, which includes 2.4m sq ft of the under-construction integrated logistics hub in Singapore that is scheduled to be completed in the first half of this year.
“The CWT voluntary general cash offer will enable the HK Group to simultaneously enter into logistics, engineering, financial services and commodity trading businesses and have a presence across approximately 90 countries globally,” HNA said.
Upon completion of the acquisition, HNA said it “presently has no intention to support any action or take any steps to maintain the listing status of CWT on the SGX, and reserves its rights to seek a voluntary delisting of the company from the SGX”.
The latest offer followed closely the deal announced 31 March on HNA Innovative Finance Group entering into a definitive agreement for HNA to purchase a 51% stake in Glencore's petroleum products storage and logistics business for $775m, also payable in cash upon closing.
The completion of the transaction will see the incorporation of a new firm HG Storage International, which will consolidate Glencore's existing petroleum products storage and logistics businesses into a global portfolio of assets.
HG Storage will have presence in major trading hubs and be located across Europe, Africa and the Americas.
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