CIC said to bid for prop­erty owner

China Daily (USA) - - BUSINESS -

Global Lo­gis­tic Prop­er­ties Ltd, the $6 bil­lion owner of in­dus­trial prop­erty, has at­tracted takeover in­ter­est from an in­vestor group that in­cludes China’s sov­er­eign fund, sources with knowl­edge of the mat­ter said.

China In­vest­ment Corp, Hopu In­vest­ment Man­age­ment and Hill­house Cap­i­tal Man­age­ment have held talks about mak­ing a joint of­fer for Sin­ga­pore-based GLP, the sources added.

The suit­ors have reached out to po­ten­tial part­ners to weigh their in­ter­est in join­ing the con­sor­tium, one source said.

GLP shares gained 8.7 per­cent to S$1.945 ($1.40) at the close on Wed­nes­day in Sin­ga­pore, af­ter ear­lier jump­ing by an in­tra­day record of 14.5 per­cent. Any deal would de­pend on the re­cep­tive­ness of GLP’s big­gest shareholder, Sin­ga­pore sov­er­eign wealth fund GIC Pte, and there was no cer­tainty the con­sor­tium would pro­ceed with a bid, the sources said.

The Chi­nese in­vestors ... are watch­ing very closely for any op­por­tu­nity to ac­quire over­seas as­sets.”

An­drew Sul­li­van, man­ag­ing direc­tor at Haitong In­ter­na­tional Se­cu­ri­ties Group

A trans­ac­tion could rank among Asia’s big­gest-ever buy­outs and would add to this year’s record flow of Chi­nese ac­qui­si­tions abroad, a binge that’s been par­tially driven by an­tic­i­pa­tion of fur­ther de­clines in the yuan. GLP was trad­ing on Tues­day at about 0.7 times the book value, mak­ing it a po­ten­tially at­trac­tive buy­out tar­get.

“GLP has been op­er­at­ing in China and the Chi­nese con­sor­tium knows the tar­get very well, so it’s a deal work­ing in their fa­vor,” said An­drew Sul­li­van, a man­ag­ing direc­tor at Haitong In­ter­na­tional Se­cu­ri­ties Group Ltd. “The Chi­nese in­vestors are ex­pect­ing the yuan to de­pre­ci­ate fur­ther, so they are watch­ing very closely for any op­por­tu­nity to ac­quire over­seas as­sets.”

Of­fi­cials at the con­sor­tium mem­bers de­clined to com­ment or didn’t im­me­di­ately re­spond to re­quests for com­ment.

“The com­pany wishes to ad­vise that it is not in dis­cus­sions with the above ref­er­enced in­vestor group at this time,” GLP said in an ex­change state­ment on Wed­nes­day in re­sponse to queries from the Sin­ga­pore bourse. “The com­pany re­mains com­mit­ted to en­hanc­ing shareholder value and con­tin­ues to re­view and as­sess po­ten­tial op­por­tu­ni­ties.”

GLP has been in­volved in at least $17.1 bil­lion of ac­qui­si­tions in the past three years, data showed, as the ware­house owner seeks to bulk up and take ad­van­tage of boom­ing de­mand from cus­tomers like Alibaba Group Hold­ing Ltd and Inc. The com­pany’s clients also in­clude Adi­das AG, Car­refour SA and LVMH Moet Hen­nessy Louis Vuit­ton SE, its web­site shows.

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