Singapore property owner GLP gets takeover offer from China fund CIC Group

Photographer: Munshi Ahmed/Bloomberg

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, people 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, according to the people. The suitors have reached out to potential partners to weigh their interest in joining the consortium, one of the people said, asking not to be identified because the information is private.

GLP shares jumped as much as 14.5 percent, an intraday record, in Singapore trading Wednesday. They were up 11.2 percent at 12:30 p.m. in the city-state before the company requested a trading halt, pending the release of an announcement. Any deal would depend on the receptiveness of GLP’s biggest shareholder, Singapore sovereign wealth fund GIC Pte, and there’s no certainty the consortium will proceed with a bid, the people said.

The company was trading Tuesday at about 0.7 times book value, data compiled by Bloomberg show, making it a potentially attractive buyout target. Its shares have declined more than 40 percent from their peak three years ago through Tuesday. They closed at S$1.79 Tuesday, below their 2010 IPO price, giving the company a market value of about $6 billion.

A spokeswoman for GLP declined to comment, while GIC didn’t immediately respond to a request for comment. Officials at the consortium members declined to comment or didn’t immediately respond to requests for comment.

GIC, which manages Singapore’s foreign reserves, holds a 37 percent stake in GLP, while Hillhouse owns 8.2 percent, the Bloomberg-compiled data show. CIC, the $814 billion Chinese wealth fund, has previously partnered with GLP for deals in Japan and Brazil.

Hopu, the Beijing-based buyout firm, was part of a consortium that invested $2.5 billion in GLP’s Chinese business in 2014. Its founder, veteran dealmaker Fang Fenglei, joined GLP’s investment committee that year and was appointed to the Singapore company’s board as a non-executive director.

Also Read: Singapore: Fraser Logistics, Roxy Pacific & Mapletree strike property deals

How China’s dealmakers pulled off a $207b global M&A spree