Vanke rally fizzles by day’s end after buyout of China’s biggest warehouse operator
Investors gave a mixed reaction to Vanke’s participation in a consortium that will buy Singaporean warehouse operator Global Logistic Properties, with its shares ending unchanged in resumed trading on Tuesday
China Vanke shares ended unchanged on Tuesday in whipsawed trading that saw them up as much as 4 per cent in the morning session, as investors had their first chance to react to an announcement that the company had become a major shareholder of Global Logistic Properties, the biggest operator of industrial real estate in China.
Vanke’s shares reached a record HK$24.2 in resumed action during the morning session, but struggled in the afternoon, eventually giving back the gains to end the session unchanged at HK$23.20.
Its Shenzhen shares climbed 3 per cent to 25.3 yuan, lifting its market value to 280 billion yuan (US$41.48 billion).
A Chinese-backed consortium led by Vanke won a management buyout on July 14 to take over Singapore listed GLP – one of the world’s largest logistic operators for S$16 billion (US$11.6 billion), which is set to be Asia’s biggest-ever private equity acquisition by value.
Vanke, which owns a 21.4 per cent stake, is the consortium’s largest shareholder, while the remaining members include GLP’s chief executive and Chinese investors Hillhouse Capital Group, Hopu Investment Management and Bank of China Group Investment.
Vanke said on Monday that it would invest up to S$3.4 billion in GLP, as part of the S$16 billion takeover deal by the consortium.