GIC-backed GLP’s privatisation gets green light from shareholders

Photo: GLP website

Singapore-listed warehouse operator Global Logistic Properties (GLP) has received a nod from its shareholders for its privatisation by Nesta Investment Holdings, the vehicle owned by Hopu, Hillhouse Capital, SMG, Bank of China Group Investment and Vanke.

The privatisation will take place via a scheme of arrangement. Of the total number of shareholders present and voting in person or by proxy at the scheme meeting, 96.02 per cent voted for the scheme, GLP said in a statement issued on Thursday.

“Shareholders have approved the proposed acquisition of all the issued and paid-up ordinary shares in the capital of GLP (excluding treasury Shares), by Nesta Investment Holdings Limited (the “Offeror”), via a scheme of arrangement, at the Scheme Meeting held today,” it added.

The final day of trading of GLP shares on the SGX is likely to be January 4 next year.

Singapore state fund GIC, as the single largest shareholder of GLP with a 36.84 per cent stake, voted in favour of the scheme, the announcement said.

The scheme will now be presented to the High Court of the Republic of Singapore for sanction. If sanctioned by the court, it is expected to become effective and binding in accordance with its terms on 10 January 2018. Shareholders can expect to receive S$3.38 in cash per share January 19 next year.

Upon completion, the $11.6-billion GLP buyout will be the largest ever private equity acquisition of an Asian company.

The bidding for GLP, which started early this year, had run into trouble as some bidders feared that Nesta, a consortium backed by GLP’s chief executive Ming Mei, had an advantage over others with its greater access to information.

GLP had to clarify later that it had taken steps to “alleviate potential conflicts of interest and ensure fairness of the process”. The response was followed by reports that some of the bidders including Warburg Pincus, Blackstone and RRJ Capital had pulled out from the process.

GLP, a global provider of modern logistics facilities is one of the world’s largest real estate fund managers, with assets under management of approximately $39 billion.

Also Read:

GLP shares tumble after report of bidders pulling out, firm clarifies on bidding process

Singapore: GIC acts on bidders’ complaints linked to GLP sale

Singapore: GLP to sell four Japanese logistics properties in $420m deal

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.