U.S. and China Warehousing Giant GLP Moves Closer to Buyout -- Update
February 27 2017 - 6:27AM
Dow Jones News
By P.R. Venkat in Singapore and Kane Wu in Hong Kong
Global Logistic Properties Ltd., a backbone of the logistics
industry in the U.S. and China, said it has narrowed down the
bidders for a potential buyout.
Among those that have expressed interest in the $9.5 billion
warehousing giant are private-equity firms Blackstone Group LP and
Warburg Pincus LLC, people familiar with the process have said, as
well as a management-led consortium. As is typical in a big buyout,
GLP will now give those bidders chosen for the shortlist access to
detailed information about business operations.
GLP didn't name the shortlisted bidders, saying in a statement
to Singapore's stock exchange only that several parties that will
be allowed to conduct due diligence.
The company's chief executive, Ming Mei is working with a
consortium of China-focused investment firms Hillhouse Capital
Group and Hopu Investment Management Co. Mr. Ming and GLP
nonexecutive director Fang Fenglei, who runs Hopu Investment, will
exclude themselves from board discussions of the bids.
Singapore sovereign-wealth fund GIC Pte. Ltd., GLP's biggest
shareholder with a 37% stake, effectively put it up for sale in
December when it asked the company to undergo a strategic review.
GLP then hired J.P. Morgan Chase & Co. to seek out potential
buyers.
GLP is one of the world's largest warehousing and distribution
companies, growing in recent years through acquisitions such as an
$8.1 billion purchase, with GIC, of U.S. industrial-property owner
IndCor from Blackstone. Its China portfolio is valued at about
$12.8 billion, including properties in Beijing and Shanghai. GLP
funds its purchases with a mix of its own money and capital raised
from outside investors.
Demand for sophisticated logistics operations has grown as
e-commerce has expanded globally. GLP has targeted the U.S. and
China, the two biggest online-shopping markets, for its expansion.
It manages logistics assets valued at close to $40 billion across
the U.S., China, Japan and Brazil.
More than one third of GIC's investments are in the U.S.,
including owns stakes in Citigroup Inc. and UBS Group AG. It
oversees about $344 billion in assets, making it the world's
eighth-largest sovereign fund, according to the Sovereign Wealth
Fund Institute.
Write to P.R. Venkat at venkat.pr@wsj.com and Kane Wu at
Kane.Wu@wsj.com
(END) Dow Jones Newswires
February 27, 2017 06:12 ET (11:12 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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