Finance

Singapore Warehouse Giant Sells to Chinese Bidder for Record US$11.6 Billion

Singapore Warehouse Giant Sells to Chinese Bidder for Record US$11.6 Billion

China Vanke, said it will take part in the $11.6 billion acquisition of Asia's biggest warehouse operator Global Logistic Properties (GLP) by a Chinese private equity consortium.

If the deal goes through, it will be the largest-ever private equity buyout of an Asian company, surpassing last year's takeover of China's Qihoo 360 Technology, according to Bloomberg data.

Singapore-based GLP, which is considered the backbone of logistics in the US and China, received an offer of S$3.38 a share from a consortium that includes GLP's CEO Ming Mei and Chinese investors Hopu Investment Management, Hillhouse Capital Group, Vanke Group and Bank of China Group Investment.

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.

The group was chosen by GLP's board over several other potential investors including Warburg Pincus LLC and Blackstone Group LP, which both sought to bid for GLP. The offer exceeds the shares' highest closing price since listing and represents a 64 percent premium to the price before Singaporean sovereign wealth fund GIC Pte., GLP's largest shareholder, initiated a strategic review of the company in December.

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GIC, which owns 37% of GLP, has committed to vote in favor of the deal, according to stock-exchange filings, though it has wiggle room to accept a competing offer if one is made.

The deal will include debt financing of just less than US$5 billion, people familiar with the matter said. GLP says it is the biggest owner of warehouses in numerous world's most important markets, including China, Japan and Brazil.

GLP will appoint an independent financial adviser to advise its independent directors on the deal. Its expansion focused on the US and Chinese market, the two largest online shopping markets.

GLP's customers include Walmart (WMT), Unilever (UL), JD.com (JD), Adidas (ADDYY), Estee Lauder (EL) and L'Oreal (LRLCY). In the U.S.it the second largest warehouse operator behind Prologis Inc.

Julie Steinberg in Hong Kong contributed to this article.