Global Logistic Properties (GLP) is believed to be in the final stages of signing an agreement to sell to a management-led Chinese consortium, valuing the Singapore company at around US$10bn (€8.77bn).
The company went into a trading halt today pending an announcement on the sale to the Hopu consortium, led by GLP chief executive Ming Mei.
The Chinese consortium has apparently outmanoeuvred a consortium led by Warburg Pincus, one of the world’s top three logistics companies, with its partner E-Shang Redwood.
When asked if a deal had been finalised, a source told IPE Real Estate: “We have to wait for the final announcement. There are many details that have to be worked out before a final agreement is signed.”
The source said the chair of GLP, Seek Ngee Huat and a special committee of four formed to evaluate all bids will make the final decision on which bid to accept.
Under the rules of the Singapore Stock Exchange, GLP can stay in a trading halt for a maximum of three days .
One source said an announcement could be made at any time during this period.
Singapore’s sovereign wealth fund, GIC, is the single largest shareholder in GLP, with 37%. No one expects a deal to be done without its approval.
One source said GIC has most likely agreed to accept the offer price to avoid a protracted sale process, bearing in mind that New York hedge fund Ellliott Asset Management, which has a reputation of “digging its heels” in to protect its position, has built up a stake of around 5.1%.
Not all investors are likely to be happy with the offer price, with one investor telling IPE Real Estate that he would grudgingly accept it.
Shareholders will be given a chance to approve the deal.
The Chinese consortium is expected to delist GLP, which was floated in October 2010.
It is understood to include some of China’s biggest corporate names, such as China Vanke, Ping An Insurance, Hillhouse Capital Management and a company associated with Alibaba’s founder Jack Ma.
Industry sources said the inclusion of China Vanke, one of China’s largest residential companies in the consortium wa a gamechanger for the bidder.
“It has a huge balance sheet ready to pay out,” said one source.
GLP manages US$37bn in assets, mostly in China, the US, Brazil and Japan, with the bulk located in the former.