SINGAPORE (Sept 28): OCBC Research is ceasing coverage on CWT Limited, the integrated logistics and supply chain solutions provider, given HNA Holding Group’s intentions to delist the company after acquiring it.
To recap, the Chinese conglomerate had in early September made a voluntary conditional general offer (VGO) to acquire CWT for $2.33 a share via a deal which values the company at $1.3 billion.
See: CWT receives formal US$1 bil takeover offer from HNA
It was announced last week that the minimum acceptance condition had been met such that the offer was declared unconditional in all respects. As a result, the offer’s closing date has been extended from Oct 19 to Nov 2, 5.30pm.
In a Thursday morning market update, analyst Eugene Chua reiterates his recommendation for shareholders to accept the offer when the formal VGO is made, as the offer price is higher than OCBC's latest fair value estimate of $1.91.
He also highlights HNA’s intention to delist and privatise CWT, with zero plans of taking any steps to keep the group listed.
“With the offer now made unconditional and given the impending privatisation of CWT, we are ceasing coverage on CWT,” states Chua.
As at 11.40am, shares in CWT are down by 1 cent at $2.33.
