Asia's biggest buyout sees GIC-backed firm get $11.6b

Asias biggest buyout sees GIC-backed firm get $11.6b
Singapore sovereign wealth fund GIC owns 37 per cent of GLP.

By Reuters

Published: Fri 14 Jul 2017, 9:00 PM

Last updated: Sat 15 Jul 2017, 9:23 AM

A leading Chinese private equity consortium backed by senior executives from Global Logistic Properties (GLP) won a bid to acquire GLP for S$16 billion ($11.6 billion), marking Asia's largest private equity buyout in a buoyant sector.
GLP, which is Asia's biggest warehouse operator and boasts a $41 billion portfolio of assets spread across China, Japan, Brazil and the United States, is benefiting from rising demand logistics facilities driven by a boom in e-commerce from clients such as Amazon.com and JD.com.
The winning bid of China's Hopu Investment Management, Hillhouse Capital Group, real estate developer Vanke Group and the financial service investment arm of Bank of China was backed by GLP CEO Ming Mei, which trumped an offer by a Warburg Pincus-led consortium - the only other short-listed bidder.
The group is offering S$3.38 in cash per share, representing an 81 per cent premium over its 12-month volume weighted average price and a 25 per cent premium over its last full trading day before the announcement. Surprisingly, the acquisition is not conditional on getting antitrust approvals or a green light from the Committee on Foreign Investment in the United States (CFIUS), among others, at a time when regulators are vetting takeovers more closely.
Singapore sovereign wealth fund GIC, which owns 37 per cent of GLP and is its biggest shareholder, is supporting the transaction but is free to accept an unmatched superior offer.
"GIC played hard to get a decent offer," said a person with direct knowledge of the deal. "There's a good premium with very few strings attached."
Last year, GIC nudged GLP to start a strategic review of its business after its shares tumbled over a period of two years starting in 2015. GLP then hired JPMorgan as its financial adviser and Allen & Gledhill as its legal adviser to work on the review.




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