The share price of Singapore-based logistics service provider CWT Ltd surged over 10 percent on Monday to close at S$2.27 ($1.61), boosted by Chinese conglomerate HNA Holding Group Co's recent decision to acquire the company.

After almost a year of exclusive talks, HNA Group plans to acquire CWT for S$1.4 billion ($1 billion), offering its shareholders S$2.33 per share in cash, representing a premium of 2.6 percent on the company's price of S$2.27 after the shares were suspended from trading on Monday.

Singapore-listed logistics firm CWT Ltd, incorporated in 1970 as a private arm of the Port of Singapore Authority, specializes in logistics services, commodity marketing, financial services and engineering services.

As Singapore's largest homegrown logistics provider, CWT has global network connectivity to around 200 direct ports and 1,600 inland destinations. During the past fiscal year ended Dec 31, 2016, the company's sales revenues totaled S$9.25 billion.

"HNA Group's plan to acquire CWT, including the infrastructure on its important logistics nodes, is beneficial for the company to gain competitiveness in the future. For CWT, the decision is probably based on its positive expectations toward the Belt and Road Initiative," said Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation.

In 2016, HNA Group purchased Ingram Micro Inc, the world's largest wholesale technology products distributor, with an equity value of approximately $6 billion.

Ingram Micro possess a vast global supply chain, offering services in over 100 countries around the world. It owns 122 delivery centers and more than 1,700 suppliers globally. The acquisition was one of the crucial steps by HNA Group toward perfecting its supply chain management system.

HNA Group ranked 353rd on the 2016 Fortune 500 list. Founded in 2000, it is involved in logistics, aviation, real estate, financial services and tourism. It is a part owner of Grand China Air (Hainan Airlines), China's fourth-largest airline.

In recent years, the company has experienced massive expansion by making acquisitions in various sectors. Last year, it acquired 25 percent of Hilton Worldwide for $6.5 billion. In 2017, it purchased Irish aircraft leasing company Avolon for $2.5 billion. It is also leading a deal to buy a controlling stake in the owner of the publisher of Forbes magazine.

Contact the writers at zhongnan@chinadaily.com.cn