China's HNA in talks for stake in Singapore logistics firm for US$1 billion: Sources

HNA Group is in talks to buy a controlling stake in logistics firm CWT Ltd, and the deal could be announced as early as next week.
HNA Group is in talks to buy a controlling stake in logistics firm CWT Ltd, and the deal could be announced as early as next week. PHOTO: AFP

SINGAPORE (REUTERS) - Chinese conglomerate HNA Group is in talks to buy a controlling stake in Singapore-listed logistics firm CWT Ltd in a deal worth around US$1 billion (S$1.35 billion), two people familiar with the deal said.

One of the sources said on Friday that a deal could be announced as early as next week.

CWT's controlling shareholder flagged a potential sale of the business last year and it attracted interest from major private equity firms, Reuters reported in August, quoting sources.

CWT insiders, including the chairman and his family, own nearly 65 per cent of the company, Thomson Reuters data shows. Shares in CWT were up 7 per cent on Friday.

HNA is among the Chinese companies that have been splurging on foreign acquisitions to sidestep slowing domestic growth. The total value of Chinese outbound acquisitions topped US$100 billion for the first time last year.

The Wall Street Journal earlier reported the news about HNA's talks to buy CWT's controlling stake.