Mergers & Acquisitions

Shareholders of Singapore logistics firm GLP approve US$11.6 billion buyout by Chinese-led consortium

Property firm China Vanke and fund Hillhouse Capital, along with GLP management, are part of the buyer group

PUBLISHED : Thursday, 30 November, 2017, 2:38pm
UPDATED : Wednesday, 06 December, 2017, 4:29pm

Global Logistic Properties (GLP), the Singapore-listed logistics giant and the largest operator of warehouses in China, said a proposed S$16 billion (US$11.6 billion) buyout of the firm by a consortium led by developer China Vanke Co and Chinese fund Hillhouse Capital had been approved by shareholders on Thursday.

GLP said 99.96 per cent of the total number of shares voted by shareholders present and voting in person or by proxy at the meeting were in favour of the buyout proposal.

The consortium, The Nesta Investment Holdings MidCo, had proposed the buyout in July. It would be Asia’s biggest-ever private equity acquisition by value. Other members of the consortium include GLP co-founder and chief executive officer Ming Mei and Goldman Sachs’ former China chairman Fang Fenglei.

Under the plan, GLP will delist from the Singapore bourse early next year.

Vanke, Hopu lead US$11.6 billion management buyout of GLP, winning Asia’s largest takeover

Singapore’s sovereign wealth fund, GIC, which is the single largest shareholder in GLP with a 36.8 per cent stake, voted in favour of the proposal.

GLP owns 17.5 million square metres of completed warehousing space in China, more than double the combined total of its four biggest rivals, according to its annual report in March.

In the three months to September, GLP reported a 34 per cent year-on-year jump in net profit to US$231 million, boosted by higher rental income and foreign exchange gains. Total revenue rose 32 per cent to US$282 million, the company said.