Reports suggest HNA could invest in CWT Logistics stake
10 / 05 / 2016
Chinese conglomerate HNA could be about to expand its freight business as reports suggest it is set to launch a bid to take a controlling interest in CWT Logistics.
Reports emerged last week that HNA, which has stakes in several airlines, including Hainan Airlines and Tianjin Airlines, and logistics businesses, is looking to buy CWT’s controlling shareholders’ stake in the Singapore-based logistics firm, a move which would trigger a full buyout.
The news caused a jump in CWT Logistics’ share price and the company was forced to issue a statement confirming that its controlling stakeholder, C&P Holdings with a 31.9% stake, was undertaking a strategic review of its business and assets.
The logistics firm admitted discussions had taken place but refused to name the interested companies.
CWT added: “C&P has been approached by various interested parties with different proposals for its business and assets.
“While C&P has engaged in preliminary discussions with these interested parties, it is still in the process of reviewing the proposals.
“There is no certainty or assurances that such discussions will lead to any transaction involving the company.”
In 2015, CWT recorded revenues of S$9.9bn and profits attributable to shareholders of S$108.9m. It operates in more than 90 countries through regional offices and service partners.
The vast majority of its revenues, 49%, are generated in China. Its largest business sectors are commodities, defense, food and beverage, general forwarding, petrochemicals and chemicals, and marine.
HNA has been in the air cargo headlines of late as it took a stake in Swissport and Azul Brazilian Airlines last year.