CWT Acquired a New Subsidiary
CWT has signed a Sale & Purchase Agreement to acquire 70% stake in Camsin Corporation Pte Ltd (Camsin) for a total consideration of $1.45 million. The acquisition involves the purchase of 1,050,000 shares in the capital of Camsin from the existing shareholders and 700,000 new ordinary shares to be issued by the Company. The consideration represents less than 5% of CWT's shareholders' fund and the transaction will not have any significant impact on the Group's current financial results. None of the Directors or substantial shareholders has any direct or indirect interest in this transaction.
Camsin was incorporated in Singapore in April 1992 with most of its business undertakings in Cambodia. The Company has a 15-year licence (with option to extend for another 15 years) to operate a berth within the Sihanoukville Port. With the berth, the Company provides logistics support for offshore operations and port services for import and export activities. In addition, Camsin also provides shipping agency services and petro station services.
With anticipated increase in trade and foreign investments in Cambodia, the berth at Sihanoukville offers great potential. It provides a good platform for the Company to tap on other spin-off activities such as shipping, terminal handling and freight forwarding services.
CWT together with Camsin had just recently concluded a Development Agreement with Sihanoukville Port to develop a wide range of logistics services including container freight station and transportation services. CWT foresees that Camsin's berth at Sihanoukville will complement and support the ICD operations thereby achieving good operational synergies.
