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Singapore-based Global Logistic Properties (GLP) has narrowed down its list of potential bidders to at least three groups, reported DealStreetAsia, citing sources privy to the matter.
Among them are Blackstone Group and a Warburg Pincus-led investor group, which include E-Shang Redwood. Another shortlisted bidder is a management-backed consortium comprising Chinese investment firms Hopu Investment Management and Hillhouse Capital Management.
In line with this, the three groups have been allowed to conduct due diligence on the business of the industrial property landlord, said the sources.
“As one of the options available under the ongoing strategic review, the special committee has evaluated various non-binding proposals received,” said GLP in an SGX filing on Monday (27 February).
“These proposals may involve a possible acquisition of all, or some, of the shares of the company, which may or may not lead to an offer being made. The committee is [also] in discussions with several parties whom it has shortlisted and such parties will be invited to conduct due diligence on the company.”
In December, GLP announced that it has hired JPMorgan Chase & Co to aid in the strategic review of options to boost shareholder value, at the behest of GIC Private Limited, its largest shareholder. In line with this, it has created a special committee consisting of four independent directors to take charge of the matter. However, there’s no certainty it would result in a deal.
Nonetheless, acquiring GLP, which has a market capitalization of US$8.8 billion (S$12.38 billion), would leverage on the growing demand for warehouse space from e-commerce firms like JD.com and Alibaba.
On Tuesday (February 28) at the close of the market, GLP’s stock price slid by 2.9 percent to S$2.66.
Christopher Chitty, Senior Content Specialist, edited this story
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