CWT shares soar after takeover offer from HK group
SINGAPORE — Shares in CWT surged on Monday (April 10) after it received a takeover offer from Hong Kong’s HNA Holding Group at the weekend that values the Singapore-based logistics firm at nearly S$1.4 billion.
Nila, the 28th SEA Games mascot, at the official opening of SINGSOC Logistics Centre at CWT Logistics Hub1. TODAY file photo
SINGAPORE — Shares in CWT surged on Monday (April 10) after it received a takeover offer from Hong Kong’s HNA Holding Group at the weekend that values the Singapore-based logistics firm at nearly S$1.4 billion.
HNA, through its wholly-owned Singapore subsidiary HNA Belt and Road Investments (Singapore), offered S$2.33 for each CWT share in an all-cash voluntary conditional general offer, it said in a filing with the Singapore Exchange (SGX). This represents an 13.1 per cent premium to the last transacted price per CWT share on April 5, being the last full trading day prior to the trading halt on CWT Shares preceding the date of the takeover announcement.
HNA said it does not intend to maintain the listing status of CWT if the public float falls below 10 per cent. Subject to normal business considerations, it does not intend to make major changes to the management team of the company.
In a note on Monday, OCBC Investment Research analyst Eugene Chua recommended that CWT shareholders accept the offer, which represents a 19.5 per cent premium to its fair value of S$1.95, calling it attractive and a good opportunity to unlock value. CWT shares jumped 19 cents, or 9.2 per cent, to close at S$2.26 on Monday. It was one of the most actively traded counters by value on the SGX, with about 12.9 million shares worth more than S$29 million changing hands.The benchmark Straits Times Index ended up 0.1 per cent at 3,181.45.
CWT was incorporated in 1970 as a private arm of the Port of Singapore Authority to provide warehousing and container trucking services in support of container terminal operations. CWT, which has been listed on the Singapore stock exchange since April 1993, is a leading provider of integrated logistics solutions with interests in logistics services, commodity marketing, financial services and engineering services.
As part of its development strategy, the Hong Kong group mainly focuses on merger and acquisition opportunities in international markets. In particular, it seeks merger and acquisition targets in sectors including logistics real estate, logistic warehousing, bulk commodity trading, logistics 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, it said.
In order for the formal offer to go ahead, pre-conditions must be fulfilled or waived by the offeror by Sept 9, which includes anti-trust approvals from China, European Union, Japan, South Africa and other economies, as well as HNA shareholders’ approval at a general meeting.
The offer will be conditional upon the offeror receiving valid acceptances that will result in the offeror and its concert parties holding more than 50 per cent of CWT shares by the closing date, to be announced later. The offeror has received irrevocable undertakings from about 65.1 per cent of CWT shareholders for their shares, and the offer will become unconditional as to acceptances upon the vendors tendering their CWT shares.