CWT has confirmed that its controlling shareholders have entered into exclusive negotiations for a potential sale of their interests to a subsidiary of Chinese conglomerate HNA Group.
In an announcement early on Monday, CWT said C&P Holdings and its controlling shareholders have entered into an exclusive negotiation deal with a unit of HNA, a diversified group that also runs Hainan Airlines Co.
"There is no certainty or assurance that such negotiations between C&P and its controlling shareholders and HNA Group will result in any definitive agreement or transaction or lead to a consummation of the potential transaction," CWT said.
C&P Holdings held 31.9 per cent stake in CWT as at March 16, 2016, and is controlled by CWT chairman Loi Kai Meng, director Liao Chung Lik and businessman Lim Soo Seng. A buyer who buys all of those shares will cross the 30 per cent ownership threshold and will have to make a general offer for the company as required under Singapore's takeover rules.
The Loi, Liao and Lim families, who have been looking to sell their stake since July 22, 2015, have a total shareholding of at least 58.9 per cent in CWT.
Credit Suisse and DBS Bank are advising the families.
CWT's shares gained 1.4 per cent, or 3 Singapore cents, to trade at S$2.15 as at 10.21am on Monday.