Logistics firm CWT could be sold again, as its controlling shareholders are considering a strategic review of the business and assets.
CWT said in an announcement yesterday that the strategic review "may or may not lead to a transaction involving the company", adding that Credit Suisse and DBS Bank are assisting the controlling shareholders with the review.
The announcement comes two weeks after it was reported that CWT's controlling shareholders were exploring a sale of their stakes in the logistics company.
Sources said then that the parties were working with investment banks and could reach out to potential buyers in the next few months.
CWT's second-quarter net profit fell 14 per cent to $26.2 million, it announced yesterday, while revenue for the three months to June 30 plunged 45 per cent to $2.03 billion, partly owing to a drop in business for commodity logistics.
AT A GLANCE
Net profit: $26.2 million (-14%)
Revenue: $2.03 billion (-45%)
Earnings per share: 4.36 cents (-13%)
Net profit for the six months to June 30 fell 15 per cent to $55.4 million as revenue slumped 53 per cent to $3.9 billion on the back of "lower commodity trading volume in naphtha and a general drop in commodity prices", said the firm.
The company also reported a slowdown in trade services and start-up costs of its new logistics hub that partly affected profit for the first half of the year.
Quarterly earnings per share was 4.36 cents, up from 5.04 cents a year earlier.
Net asset value was $1.323 as at June 30, up from $1.275 as at Dec 31 last year.
In 2004, port operator PSA Corp sold its entire 55 per cent stake in CWT for $45.8 million in cash, or 55.5 cents a share.
The buyer was logistics services provider C&P Holdings, which made an unconditional cash offer to buy the remaining CWT shares at the same price.
Under Singapore listing rules, a purchase of C&P shareholders' stakes would trigger a general offer for the rest of CWT.
CWT was founded in 1970, and employs about 6,000 people. Its services include commodity logistics, freight forwarding, warehousing and defence procurement.
It also controls MRI Trading, a trader of base metals and petroleum products, and helps to manage Cache Logistics Trust which owns industrial properties in Singapore, Australia and China.
CWT shares closed four cents lower at $2.20 yesterday.