GLP accepts SGD16bn takeover offer from Chinese consortium

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The deal is part of the logistics group's independent strategic review to look at options available to boost shareholder value.

The deal is set to be Asia's largest buyout by a private equity group.

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

Nesta is comprised of five Chinese companies, including private equity investment firm HOPU Logistics Investment Management and Bank of China Group Investment.

Last year, GIC nudged GLP to start a strategic review of its business after its shares tumbled over a period of two years starting in 2015.

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GLP owns and manages a global portfolio of 55 million sqm (592 million sq ft) of warehouses and other logistics facilities, with leading market positions in China, Japan, the United States and Brazil, said GLP's annual report for the financial year ended March 31, 2017.

Shareholders will vote on the scheme at the company's annual general meeting to be held on 28 July.

It has grown rapidly through acquisitions, including the US$8.1 billion purchase, with GIC, of USA industrial property owner IndCor from Blackstone.

Seek Ngee Huat, GLP's chairman who also chairs the special committee undertaking the strategic review, said that, after an extensive evaluation of all final proposals received, it was made a decision to accept the proposed scheme. "GIC agreed to give the GIC undertaking after having considered the terms of the acquisition, in particular, both the price and certainty of execution", it added.

However, GIC said it could accept an unsolicited, higher bid that is not matched by the Chinese-led group.

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