THE controlling shareholders of CWT are mullling an exclusivity agreement to negotiate a sale of their stake in the logistics and commodities trading company to China's HNA Group, market sources told The Business Times.
Signing of the exclusivity agreement could take place soon.
CWT chairman Loi Kai Meng, CWT director Liao Chung Lik, businessman Lim Soo Seng and their families have been exploring a sale of their stake since July 22, and have hired investment banks to advise them. The three families controlled more than 55 per cent of CWT's shares as at March 16, 2016.
The HNA Group, a conglomerate with varied businesses, has been on an acquisition spree over the past year. In April, the group agreed to buy US-based Carlson Hotels for an undisclosed sum, which would give it ownership of the Radisson, Park Plaza and Country Inns & Suites hotel brands.
HNA this year has also bid for Swiss airline caterer Gategroup and US electronics distributor Ingram Micro.
CWT shares were up 2.5 per cent or five Singapore cents at S$2.07 as at 11.48am on Friday.