GLP completes cross-border investment in China's largest warehouse logistics provider

SINGAPORE - Logistics facilities provider GLP said on Thursday that it has completed an investment of a 15.5 per cent equity stake in Chinese firm China Materials Storage and Transportation Development Company.

It acquired the stake for 2 billion yuan, at a price per share of 5.86 yuan, which is a 43 per cent discount to the last transacted price of the Chinese firm's shares on the Shanghai Stock Exchange on Dec 9.

GLP becomes the second largest shareholder of the Chinese firm, and gets three of 11 seats on its board of directors.

It had entered a partnership with the firm, which is China's largest state-owned warehouse logistics provider, and plans included GLP's investment in it, and a development joint venture.

The logistics firm will own 49 per cent of the joint venture, with the option to increase ownership to 50 per cent.