Global Logistic Properties Ltd (GBTZY) has received a takeover offer from a Chinese-backed consortium in a deal that valued the U.S.'s No. 2 owner of warehouses at $11.6 billion.
Singapore-based GLP, which is considered the backbone of logistics in the U.S. and China, received an offer of S$3.38 a share from a consortium that includes GLP's CEO Ming Mei and Chinese investors Hopu Investment Management, Hillhouse Capital Group, Vanke Group and Bank of China Group Investment.
The winning group outbid a Warburg Pincus-led consortium in the seven-month auction for Asia's biggest warehouse operator.
GLP shares soared 22.22% in Singapore to S$3.30, shares have gained 49.55% since the beginning of the year.
"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," Seek Ngee Huat, chairman of GLP's board, said in a joint statement with the winning consortium.
Demand for logistics operations has grown as e-commerce has exploded across the globe. GLP manages nearly $40 billion in logistics assets across the U.S., China, Japan and Brazil. Its expansion focused on the U.S. and Chinese market, the two largest online shopping markets. In the U.S. it the second largest warehouse operator behind Prologis Inc.
GLP's customers include Walmart (WMT) , Unilever (UL) , JD.com (JD) , Adidas (ADDYY) , Estee Lauder (EL) and L'Oreal (LRLCY) .
The S$3.38 offer price represents 81% premium over its 12-month volume weighted average price and a 25% premium over its last full trading day before the announcement.
The proposed acquisition will be done by way of a scheme of arrangement and the Chinese group plans to delist and take the Singapore-listed firm private.
The proposed acquisition is not conditional on any of the Antitrust Approvals, the approval from the Committee on Foreign Investment in the United States (CFIUS), the Third Party Consents and Fund Management Consents being obtained.
Singapore sovereign-wealth fund GIC Pte. Ltd., GLP's biggest shareholder with a 37% stake, effectively put it up for sale in December when it asked the company to undergo a strategic review.
GIC has provided an irrevocable undertaking to the Offeror to vote in favor of the proposed takeover.
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