The investor group, known as Nesta Investment Holdings Ltd., will pay $2.47 per share for Global Logistics Properties, about $11.7 billion total, one of the biggest-ever private equity buyouts of an Asian company by enterprise value.
A Chinese consortium led by Global Logistic Properties (GLP) Chief Executive Officer Ming Mei has reached an agreement to purchase the Singapore-based warehouse operator, according to a statement from the company.
Under the deal, the investor group, collectively known as Nesta Investment Holdings Ltd., will pay $3.38 Singapore (U.S. $2.47) per share for GLP, the company said July 14.
Nesta Investment Holdings is a wholly-owned subsidiary of Nesta Investment Holdings MidCo Ltd., and MidCo is owned by a consortium made up of investment management firms HOPU, Hillhouse Capital, SMG, BOCGI and Vanke. SMG Eastern Ltd. is owned by GLP’s executive officer.
According to GLP, the all-cash offer of S$3.38 per share represents an 81 percent premium over the 12-month volume weighted average price and exceeds the highest-ever closing price since listing.
The decision marks the conclusion of an independent strategic review by GLP that was announced last December and led to the receipt of multiple acquisition proposals on June 30.
GLP’s largest shareholder, investment firm GIC, which holds a 36.84 percent stake and requested the independent strategic review late last year, says it has committed to vote in favor of the acquisition agreement and its terms.
At a total value of about S$16 billion (U.S. $11.7 billion), GLP’s sale would be one of the biggest-ever private equity buyouts of an Asian company by enterprise value, according to Bloomberg Markets.
“Shareholders are advised to refrain from taking any action in relation to their shares which may be prejudicial to their interests until they or their advisers have considered the information set out in the scheme document,” GLP said.
If shareholders approve the deal, the transaction is expected to be completed by April 14, 2018.