HNA makes offer for Singapore logistics firm

Chinese conglomerate HNA Holding Group Co. offered to purchase CWT Ltd. for 1.4 billion Singapore dollars (U.S. $995 million).    Chinese conglomerate HNA Holding Group Co. Ltd. offered to buy Singapore-based commodities and logistics company CWT Ltd. on Sunday.
   The offer was worth 1.4 billion Singapore dollars (U.S. $995 million), the South China Morning Post reported.
   HNA noted how the deal is subject to government approval in China, the European Union and other countries.
   The offer for CWT comes on the heels of HNA’s $6 billion purchase of Irvine, Calif.-based Ingram Micro, a supply chain and technology services provider.
   “CWT was set up in 1970 as a private arm of the Port of Singapore Authority (PSA) to provide warehousing and container trucking services in support of the onset of container terminal operations,” according to CWT’s website. “One of the earliest logistics and trucking companies in Singapore, we diversified into other logistics and related services, including the provision of warehouse management services for the storage and handling of soft and hard commodities, freight forwarding services and engineering services.”
   The company was listed on the Singapore Stock Exchange in 1993.
   CWT said it offers global network connectivity to approximately 200 direct ports and 1,600 inland destinations, operating in more than 90 countries, including the United States.
   In 2016, CWT had a net profit of 79 million Singapore dollars on revenues of 9.25 billion Singapore dollars, year-over-year declines of 31 percent and 7 percent, respectively.
   According to CWT’s 2015 annual report, 89 percent of the company’s revenues came from its commodity marketing business, and just 9 percent from its logistics services. Broken down by location, 49 percent of its revenues came from China, 11 percent from Singapore, 35 percent from other countries in Asia, and 1 percent from America.