HNA offer for CWT 'fair and reasonable'

Independent financial adviser Ernst & Young also considered how the offer was declared unconditional in all respects, and there were no alternative offers from third parties

Published Mon, Oct 2, 2017 · 09:50 PM

CWT

Singapore

CHINESE conglomerate HNA Holding Group's S$2.33 a share, S$1.4 billion offer for logistics firm CWT Limited is fair and reasonable from a financial point of view, said Ernst & Young Corporate Finance Pte Ltd, the independent financial adviser (IFA) to the deal.

The IFA considered the premiums implied by the offer price, share liquidity, price performance against the Singapore market, and valuation measures, among other things.

For example, the offer price represented a premium of 38.7 per cent over the volume-weighted average price (VWAP) for two years before the unaffected date of Aug 3, 2015, before a strategic review …

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