GLP in talks on possible buyout

File photo of the Global Logistics Properties (GLP) building. GLP shares jumped more than 9 per cent, rising from $2.24 to as high as $2.45 before the company requested a trading halt at around 3pm.
File photo of the Global Logistics Properties (GLP) building. GLP shares jumped more than 9 per cent, rising from $2.24 to as high as $2.45 before the company requested a trading halt at around 3pm.PHOTO: GLP

Warehouse developer says it is still too early to say if any transaction will materialise

Global Logistic Properties (GLP) said it is in talks about a possible buyout - an announcement that came on a day when the firm requested a trading halt and was queried over a surge in trading activity and its share price.

It told the Singapore Exchange (SGX) that "it is in preliminary discussions with various parties in connection with a possible sale of the company".

It noted that "no definitive transaction has been entered into... and there is no assurance that any transaction will materialise".

Other than the news reports, GLP added that it was not aware of any information that would explain the "unusual movements in the shares" yesterday.

GLP shares jumped more than 9 per cent, rising from $2.24 to as high as $2.45 before the company requested a trading halt at around 3pm. It asked for the halt to be lifted from the start of trade today.

About 26.9 million shares changed hands yesterday, more than four times the volume from Wednesday.The SGX noted that it was the second query issued to GLP in the past three months.

Bloomberg cited sources on Thursday saying that GLP had sent out an information letter to targeted bidders at the end of last month.

This came after a request on Dec 1 from the company's largest stakeholder, Singapore sovereign wealth fund GIC, to undertake a strategic review of options available to enhance shareholder value.

GLP appointed JP Morgan as an adviser and constituted a special committee of four independent directors to oversee the review.

GLP, which has a market capitalisation of about $11.2 billion, manages US$39 billion (S$55.88 billion) of industrial properties worldwide through its global real estate fund.

The company has inked several significant deals in recent months.

In December, it set up a US$620 million fund that is expected to invest US$1.5 billion over three years.

In the same month, it completed the acquisition of a US$1.1 billion logistics portfolio from Hillwood Development.

The acquisition made it the second-largest owner and operator of logistics facilities in the United States.

While it ranks behind Prologis in the US, it is the largest logistics property owner and operator in China, Japan and Brazil.

A version of this article appeared in the print edition of The Straits Times on January 06, 2017, with the headline 'GLP in talks on possible buyout'. Print Edition | Subscribe