CS Credit Suisse Group

SINGAPORE—CWT Ltd.'s controlling shareholders have entered exclusive talks to sell their stake to a unit of Chinese conglomerate HNA Group Co., the Singapore-listed logistics company said Monday.

People with knowledge of the situation estimated the deal would value CWT at US$1 billion.

C&P Holdings Pte. Ltd. is owned by the founders of CWT, who have a stake of more than 30% in the logistics company. Separately, the individual founders also have additional CWT shares that they are in talks to sell to HNA. An acquisition of a stake of 30% or more triggers a mandatory offer for the entire company, according to Singapore takeover rules.

The Wall Street Journal reported on May 6 that HNA was in advanced talks with C&P Holdings to buy its stake in CWT and that exclusivity could be announced soon.

The deal, if successful, would be the latest in a series of acquisitions Chinese companies have been making around the globe in sectors spanning from commodities to logistics to real estate.

Chinese buyers have spent about $107 billion on foreign takeovers this year, according to Dealogic. HNA has been one of China's most aggressive buyers, looking to expand its travel-to-property empire beyond the country's borders.

In February, HNA made one of the biggest acquisitions ever by a Chinese company abroad when it agreed to buy U.S. technology distributor Ingram Micro Inc. for about US$6 billion. Last month, it cut a deal to buy the owner of the Radisson hotel chain and a reached a separate $1.5 billion agreement for Swiss air-travel logistics company Gategroup Holding AG.

In August last year, CWT said its controlling shareholders were considering a strategic review of the business and assets. They tapped Credit Suisse Group and Singapore's DBS Group to run the sale process for the company.

"There is no certainty or assurance that such negotiations between C&P and its controlling shareholders and HNA Group will result in any definitive agreement or transaction," CWT said in its filing to the Singapore stock exchange Monday,

Interest in the logistics industry in Southeast Asia has been high as many of these businesses are profitable and benefit from growing trade links and e-commerce.

Last year, Neptune Orient Lines Ltd. sold its profitable logistics business to Japanese firm Kintetsu World Express Inc., which provides air and ocean freight forwarding services, for $1.2 billion. In July, Global Logistic Properties Ltd., which is partly owned by Singapore sovereign-wealth fund GIC Pte. Ltd., spent $4.6 billion to buy 200 warehouses in the U.S.

If successful, it would be the largest acquisition deal in Singapore so far this year.

HNA Group, which was founded in 1993, has business interests in sectors such as aviation, tourism and finance. It has a logistics business under HNA Logistics Group, whose operations include shipping and marine engineering construction, bulk commodity trading and logistics finance.

CWT, which was founded in 1970, has a market capitalization of close to US$900 million and provides commodity logistics, freight logistics and warehousing services. It also has a division that specializes in the trading of nonferrous ores and precious metals, as well as an engineering and financial services division.

During the first quarter ended March 31, CWT reported a 14% decline in revenue from a year earlier to 1.9 billion Singapore dollars (US$1.4 billion) and a 19% decline in net profit to S$23.7 million. It has logistics facilities in Asia and Europe with operations in about 90 countries. It has a global network connecting about 200 direct ports and 1,500 inland destinations.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

May 15, 2016 20:25 ET (00:25 GMT)

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