Chinese firms win $11.6b buyout bid for Singaporean logistics firm

Global Logistic Properties receives S$3.38/share offer from Hopu-Hillhouse consortium; values company at S$16 bil

Global Logistic Properties receives S$3.38/share offer from Hopu-Hillhouse consortium; values company at S$16 bil

Singapore-based GLP, which is considered the backbone of logistics in the US and China, received an offer of S$3.38 a share from a consortium that includes GLP's CEO Ming Mei and Chinese investors Hopu Investment Management, Hillhouse Capital Group, Vanke Group and Bank of China Group Investment.

The offer price values GLP at about S$16 billion, which is about 25 per cent above GLP's closing price on July 12, which was the last trading price for the stock before it was halted. "The offer is at the very top end of recent property privatization transaction multiples", said Justin Tang of Religare Capital Markets.

The proposed acquisition is not conditional on any of the Antitrust Approvals, the approval from the Committee on Foreign Investment in the United States (CFIUS), the Third Party Consents and Fund Management Consents being obtained.

The Singapore exchange will see another heavyweight company delist once the deal is done.

The deal is expected to be completed on or before April 14 2018, said the statement.

Demand for logistics operations has grown as e-commerce has exploded across the globe.

GLP, which has a $41 billion property portfolio, provides facilities in China, Japan, U.S. and Brazil. "GIC's entry price could be lower than many people believe it to be. Besides, they probably want to move away from a capital expenditure intensive industry", said Religare's Tang.

Jana Partners was granted regulatory clearance on Thursday for its purchase of shares in medical device maker Zimmer Biomet Holdings Inc, in a sign that the hedge fund is set to build its stake and press for changes at the company. "They know people are paying a lot for warehouses right now".

"The GIC undertaking was required by Nesta before it would agree to undertake the acquisition". GLP went public in 2010.

Shares of GLP have risen 23 per cent in trading this year, giving the firm a market value of S$12.7 billion.

In what is the single largest takeover deal in Asia this year, the consortium led by GLP chief executive Ming Mei, appears to have won the race to buy the company, offering SGD3.38 in cash per security.

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