Race to buy $10 billion-valued GLP

SINGAPORE/HONG KONG: The race to buy Global Logistic Properties narrowed to between a Chinese consortium backed by the company’s management and a rival group led by Warburg Pincus, sources said, as bidders submitted offers for the $10 billion-valued firm.An acquisition offers a chance for bidders to grab control of Asia’s biggest warehouse operator, which counts Amazon among its clients and is benefiting from rising demand for modern logistics facilities, driven by a boom in e-commerce business.

Friday marked the deadline for parties to submit binding offers for GLP. Reuters was not able to confirm if more than two bids were submitted.

At current valuations, a successful transaction will rank as the largest Asian buyout by private equity groups, which are increasingly targeting bigger takeovers after raising record funds, according to Thomson Reuters data.

Singapore-listed GLP was thrust into the spotlight late last year after sovereign wealth fund GIC, which owns a 37 percent stake, nudged it to start a strategic review of its business. JPMorgan was then hired by GLP as its financial adviser.

GLP’s shares have since soared nearly 50 percent to the highest in more than three years.

After months of negotiations with a special committee of GLP’s independent directors, the race has narrowed to between a group led by Chinese private equity firms Hopu Investment Management and Hillhouse Capital Group, with the support of GLP CEO Ming Mei, and a rival consortium headed by Warburg Pincus and its logistics partner e-Shang Redwood, the sources said.

GLP, GIC, Warburg Pincus, Hopu, Hillhouse and a spokeswoman for the consortium declined to comment when contacted by Reuters. The sources declined to be identified as they were not authorized to speak about the deal.