China-based HNA Holding Group (HNA) is set to make a cash offer to acquire all the issued and paid-up ordinary shares of CWT Limited in a deal valued at approximately $1bn.
The company will make the offer through its subsidiary, HNA Belt and Road Investments (Singapore), with an offer consideration of SGD2.33 for each share of CWT.
The Chinese firm said the voluntary general cash offer for CWT is in line with the groups investment and development strategy that focuses on merger and acquisition opportunities in international markets.
In a statement to various media outlets, HNA stated: 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.
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.
Upon completion of the acquisition, the firm 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 this year 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.