Chi­nese group bids $11.6bn for ware­house firm GLP

Kuwait Times - - BUSINESS -

SIN­GA­PORE: A Chi­nese con­sor­tium on Fri­day of­fered more than $11 bil­lion for Sin­ga­pore’s Global Lo­gis­tic Prop­er­ties Ltd, which pro­vides ware­houses for the likes of Ama­zon China and Wal­Mart, as ecom­merce drives de­mand for lo­gis­tics space. In fil­ings with the Sin­ga­pore Ex­change, both firms said they were “pleased to an­nounce the pro­posed ac­qui­si­tion” af­ter GLP se­lected Nesta In­vest­ment Hold­ings as its pre­ferred bid­der.

Un­der the deal, Nesta would buy GLP shares at Sg$3.38 apiece, valu­ing the com­pany at around Sg$16 bil­lion ($11.6 bil­lion). Data com­piled by Bloomberg showed the deal will be the big­gest pri­vate eq­uity buy­out of an Asian com­pany by en­ter­prise value. It would be the sec­ond-largest lo­gis­tics deal this year af­ter China In­vest­ment Corp agreed to ac­quire Black­stone Group LP’s Euro­pean lo­gis­tics busi­ness for 12.25 bil­lion eu­ros ($13.8 bil­lion) in June, Bloomberg said.

GLP-of which Sin­ga­pore sovereign wealth fund GIC is the big­gest share­holder with an al­most 37 per­cent stake-owns and man­ages a port­fo­lio of mod­ern lo­gis­tics fa­cil­i­ties in China, Ja­pan, the United States and Brazil. It counts Ama­zon China, Wal­Mart, Adi­das, FedEx and DHL among its clients. It is also one of the world’s largest real es­tate fund man­agers with as­sets un­der man­age­ment of around $39 bil­lion, fil­ings with the Sin­ga­pore stock ex­change said.

The growth of web­sites such as Ama­zon and Alibaba means cus­tomers can buy any­thing from mo­bile phones to sports equip­ment on­line and send them straight to loved ones, driv­ing growth in ecom­merce. This has also fu­elled de­mand for state-ofthe-art ware­house space world­wide to fa­cil­i­tate such ship­ments, an­a­lysts said. US-based re­search firm eMar­keter has said on­line sales are ex­pected to reach $1.9 tril­lion this year and top $4.0 tril­lion by 2020.

Nesta is com­prised of five Chi­nese com­pa­nies, in­clud­ing pri­vate eq­uity in­vest­ment firm HOPU Lo­gis­tics In­vest­ment Man­age­ment and Bank of China Group In­vest­ment. The deal is ex­pected to be com­pleted on or be­fore April 14 next year, sub­ject to share­hold­ers’ ap­proval. —AFP

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