Global Logistic Properties receives S$3.38/share offer from Hopu-Hillhouse consortium

SINGAPORE (July 14): Global Logistic Properties (GLP) has received an offer of S$3.38/share for all its issued and paid-up shares, valuing the company at S$16 billion (RM50 billion).

The offeror is a wholly-owned subsidiary of Nesta Investment Holdings MidCo (Midco) which is owned by a consortium comprising Hopu, Hillhouse Capital, SMG, BOCGI and Vanke.

The offer price represents an 81% premium over 12-month VWAP and exceeds the highest ever closing price since listing.

The offer price is also 25% over closing price on July 12, the last full trading day prior to the joint announcement date.

Midco intends to delist and privatise the company.

The proposed privatisation will be effected by way of a scheme of arrangement.

GIC, as the single largest shareholder of GLP with a 36.84% stake, has provided an irrevocable undertaking to the offeror to vote in favour of the scheme.

The privatisation proposal marks the conclusion of the review, first announced on Dec 1 2016, which led to the receipt of firm proposals on June 30.

“The proposed scheme is considered superior due to its price certainty at significant premiums to historical prices; greater degree of deal certainty due to the limited conditionality of the bid; and would likely be completed within a defined timeframe which would reduce execution risk,” says the committee which oversaw the strategic review.

In addition, the consideration will not be reduced by the proposed dividend of 6 Singaporean cents per share announced on May 19. — theedgemarkets.com.sg

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