GLP's shareholders give green light for privatisation

Global Logistic Properties (GLP) stock will cease trading on the local bourse early next year after shareholders voted in favour of a privatisation offer yesterday.

Nesta Investment Holdings is taking GLP private at $3.38 per share via a scheme of arrangement.

GLP chief executive Ming Z Mei is a director of Nesta.

The $3.38 per share offer values the company at about $16 billion.

The vote in favour of the offer at yesterday's meeting was overwhelming, with 96.02 per cent of the total number of shareholders present and voting in person or by proxy backing the move.

Sovereign wealth fund GIC, which owns a 36.84 per cent stake in GLP, also voted for the buyout.

The scheme of arrangement will now go to the High Court. If it gets the green light, it is expected to become binding on Jan 10. The payment date for shareholders is Jan 19 and GLP is expected to be delisted soon after.

GLP chairman Seek Ngee Huat said: "The result from (the) scheme meeting brings us one step closer to the privatisation of GLP.

"A key objective of the independent strategic review was to maximise value for all shareholders, and we are pleased that the proposal received overwhelming support from shareholders. (The) scheme meeting marks a significant milestone and we would like to thank all GLP shareholders for their support since the IPO seven years ago."

Evercore Asia, the independent financial adviser for GLP's independent directors, had deemed the proposed privatisation to be fair and reasonable.

Nesta is an investment vehicle owned by Hopu, Hillhouse Capital, SMG, Bank of China Group Investment and Vanke.

GLP's net profit rose 33.6 per cent to $231.3 million in the second quarter ended Sept 30 from the previous year while revenue climbed 31.9 per cent to $281.7 million.

A version of this article appeared in the print edition of The Straits Times on December 01, 2017, with the headline 'GLP's shareholders give green light for privatisation'. Print Edition | Subscribe