Bidders for GLP have till end-June to put in offers

GLP Tokyo, part of Global Logistic Properties' portfolio of logistics facilities it manages in China, Japan, US and Brazil. The firm's strategic review is to evaluate options that will boost shareholder value.
GLP Tokyo, part of Global Logistic Properties' portfolio of logistics facilities it manages in China, Japan, US and Brazil. The firm's strategic review is to evaluate options that will boost shareholder value.PHOTO: GLOBAL LOGISTIC PROPERTIES

Logistics group to study proposals as part of strategic review; no decision yet on any sale

Shortlisted bidders for mainboard-listed Global Logistic Properties (GLP) have been given a deadline of June 30 to put in firm proposals to the company.

GLP's special committee has invited the proposals for "final evaluation", having allowed the bidders time to conduct their due diligence on the company.

In December, the logistics group embarked on a strategic review following a request by its largest shareholder GIC, which owns over a third of the company.

GLP is undertaking the review to evaluate options that would allow it to boost shareholder value though it has not said it is definitely selling. "Subsequent to the receipt of these proposals, the special committee will thoroughly evaluate the proposals in consultation with the company's external advisers," the firm said yesterday.

GLP, through JPMorgan, had approached various parties to evaluate the viability of options available for its business.

In February, it shortlisted some interested parties and invited them to conduct due diligence.

GLP had said then that the independent strategic review may involve a possible acquisition of all, or some of its shares, which may or may not lead to an offer being made for the company shares.

It noted in a stock-exchange filing yesterday that no binding proposals have been received to date .

"There is no certainty that any proposals will be received or that any definitive transaction will materialise from, or any offer will be made as a result of, any proposals received or the strategic review."

It added there is no certainty over the terms of any transaction.

About four months ago, GLP said it had received non-binding proposals from various parties, including its chief executive Ming Z. Mei, and non-executive director Fang Fenglei. The two board members have recused themselves from all board discussions, and decisions over the strategic review, as they have interest in one of the parties that has submitted offers for the company.

GLP owns and operates a US$41 billion (S$56.64 billion) global portfolio of 55 million sq m of warehouses and other logistics facilities in China, Japan, United States and Brazil. The firm, which has a market capitalisation of US$10 billion as at May 31, added that an announcement will be made in the event of any material developments.

GIC, which manages Singapore's foreign reserves, holds a 36.9 per cent stake in GLP. Other shareholders include NB Holdings Corporation, Hillhouse Capital Management and Elliott Management Corporation.

The counter closed up by a cent to $2.94 yesterday, before the announcement was released.

A version of this article appeared in the print edition of The Straits Times on June 09, 2017, with the headline 'Bidders for GLP have till end-June to put in offers'. Print Edition | Subscribe