Singapore Warehouse Giant Sells to Chinese Bidder for Record US$11.6 Billion


The consortium, which includes GLP's chief executive as well as Chinese investors Hillhouse Capital Group and Hopu Investment Management Co., will pay 3.38 Singapore dollars a share for the warehousing firm, GLP said in a statement Friday.

The buyout of Singapore-based Global Logistic Properties (GLP) by a China-led consortium will be one of Asia's biggest ever private equity deals.

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.

Read the rest of the story here. "We are pleased to announce this Scheme for our shareholders' consideration".

GLP shares have risen sharply since the beginning of the year, when its largest shareholder, Singapore sovereign-wealth fund GIC Pte Ltd., said it asked for a strategic review of GLP's options. The deal will also require the approval of the High Court of Singapore. "The deal is about the biggest China land play and the Chinese don't want it to go to U.S. private equity", he said, referring to the losing bidder, Warburg Pincus.

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Dr Seek Ngee Huat, GLP chairman, said: "After an extensive evaluation of all final proposals received, the Special Committee decided on the proposed Scheme, which we believe is compelling and value-enhancing for all shareholders". GIC's undertaking, however, allows the investor to accept a higher competing bid if it comes along before the scheme meeting.

JPMorgan Chase & Co. advised GLP on the sale, while advisers for the buyers included units of Citigroup Inc., Morgan Stanley and Goldman Sachs Group Inc., DBS Bank Ltd. and China International Capital Corp.

Vanke, one of China's largest developers, said in a separate statement the deal is part of a strategic move to become an "urban service provider".

The transaction is due to be completed on or before 14 April 2018. The Singaporean fund instructed the group to be more responsive to bidders' questions and share information transparently in the auction, the people said, asking not to be identified because the discussions were confidential.