GLP receives record takeover offer
Singapore-listed Global Logistic Properties (GLP) has received a blockbuster takeover offer from a Chinese consortium - valuing the GIC-backed warehouse operator at a cool $16 billion.
This would be the largest private equity buyout of an Asian company, should the deal go through.
Singapore sovereign wealth fund GIC, which owns a 36.84 per cent stake in GLP, could reap a profit of about $3.4 billion, including dividends, from the deal.
The consortium, Nesta Investment Holdings, has offered $3.38 per share for GLP, with the intention of delisting and privatising the firm, the two parties said yesterday.
The move is a boon for investors. The counter surged by 59 cents to an all-time high of $3.29 yesterday after trading resumed following the announcement.
Nesta, where GLP chief executive Ming Z. Mei is a board director, is owned by Hopu Logistics Investment Management, Hillhouse Capital Logistics Management, SMG Eastern, Bank of China Group Investment and Vanke Real Estate (Hong Kong).
The logistics operator decided to accept the proposal following an extensive evaluation.
It "is compelling and value-enhancing for all shareholders", said GLP chairman Seek Ngee Huat.
GLP owns and runs a US$41 billion (S$56 billion) portfolio of 55 million sq m of warehouses and other logistics facilities in China, Japan, the United States and Brazil.
GIC has agreed to support the bid, being done by way of a scheme of arrangement - a different means of takeover.
But it can accept an unsolicited, higher competing bid if one comes in - not matched by Nesta.