Amazon warehouse firm GLP bought for $11.7bn

Henrietta Brewer
July 14, 2017

The deal is set to be Asia's largest buyout by a private equity group.

The GLP Group - of which Singapore sovereign wealth fund GIC is the biggest shareholder with an nearly 37 percent stake - owns and manages a portfolio of logistics facilities in China, Japan, the United States and Brazil.

The company said the proposed privatisation will be made through a scheme of arrangement, which has to be approved by at least 50% of shareholders, representing at least 75% in value of the issued shares.

GIC said it is supportive of the transaction.

To proceed, the deal must receive approvals both from shareholders and the Singapore courts, which GLP said it would request.

"The GIC undertaking was required by Nesta before it would agree to undertake the acquisition". GIC's undertaking, however, allows the investor to accept a higher competing bid if it comes along before the scheme meeting.

Shareholders will vote on the scheme at the company's annual general meeting to be held on 28 July.

That's 25 percent more than GLP's last-traded price on Wednesday before the shares were suspended, and exceeds the highest closing price since listing. The offer price is also 64 per cent above GLP's trading level in November 2016, before the strategic review began.

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".

GLP will appoint an independent financial adviser to advise its independent directors on the deal.

Asked by IPE Real Estate for his comment on the offer, a key shareholder agreed that SGD3.38 was a "fair" price.

It beat off competition from United States based private equity companies Waburg Pincus and Blackstone.

"It is a national service to keep the large China platform in Chinese hands".

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.

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