Caixin
Feb 08, 2017 05:30 PM
M&A

CIC Group Eyes Purchase of GLP in Possible $9 Billion Takeover Bid

(Beijing) — Global Logistic Properties Ltd. (GLP) has attracted a takeover bid from a Chinese consortium that includes sovereign fund China Investment Corp. (CIC) in what looks set to be one of Asia’s largest buyout deals, according to media reports.

Shares of Singapore-listed warehouse operator GLP have soared 54% since November when buyout rumors first surfaced, boosting its market value from $6 billion to more than $9 billion.

A GLP spokesperson contacted by Caixin on Tuesday refused to comment on whether the deal would be as large as $9 billion.

Other funds in the takeover consortium include Hopu Investment Management Co. Ltd. and Hillhouse Capital Group, Bloomberg News reported in November.

GLP said in a statement last Friday that it “has received various nonbinding proposals from a number of parties,” without elaborating or denying media reports.

Caixin has learned that the Singaporean logistics company started an independent strategic review in November at the request of its holding company, GIC Private Ltd., which believed GLP’s value to be higher than $6 billion.

GLP has formed a special committee, consisting of four independent directors and headed by board Chairman Seek Ngee Huat, to oversee the review and evaluate proposals, according to a statement.

Both company CEO Ming Z. Mei and Hopu founder Fang Fenglei, a non-executive and non-independent director, have an interest in one of the proposals.

The financial adviser for the deal is J.P. Morgan (S.E.A.) Ltd., and the legal adviser is Allen & Gledhill LLP., according to the statement.

As Asia’s largest warehouse operator, GLP expanded into China in 2003 and now has a foothold in 38 Chinese cities, contributing 56% of its total assets. It has secured several rounds of investment from Chinese funds, including the Social Security Fund, which bought 100 million shares for 1 billion yuan ($146 million) in 2010, and an investment of $2.5 billion in 2014 from a group including Hopu and Bank of China Group Investment Ltd.

Contact reporter Coco Feng (renkefeng@caixin.com)

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