GLP picks China group’s S$16b bid
SINGAPORE: Global Logistic Properties (GLP) agreed to be acquired by a Chinese private equity consortium backed by senior GLP executives for S$16 billion (RM49.7 billion), choosing it over a rival bid in Asia’s largest private equity buyout.
The seven-month auction for Asia’s biggest warehouse operator was marred by complaints from some potential bidders about a lack of transparency and the perceived advantages of the Chinese consortium through their business ties.
The winning group of China’s Hopu Investment Management, Hillhouse Capital Group, Vanke Group and Bank of China Group Investment was supported by GLP chief executive Ming Mei in its bid, which trumped an offer by a Warburg Pincus-led consortium — the only other short-listed bidder.
GLP formed a committee of independent directors and said it had taken measures to alleviate potential conflicts of interest.
It said yesterday that it chose the Chinese consortium because it had more deal certainty and “limited conditionality”, reducing the “execution risk”.
“After an extensive evaluation of all final proposals received, the Special Committee decided on the proposed scheme, which we believe is compelling and valueenhancing for all shareholders,” said Seek Ngee Huat, chairman of GLP’s board, in a joint statement with the winning consortium.
The acquisition is not conditional on getting anti-trust approvals or a green light from the Committee on Foreign Investment in the United States.
Singapore sovereign wealth fund GIC, which owns 37 per cent of GLP, said it supports the transaction.