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GLP completes 2b yuan purchase of stake in Chinese logistics firm

LOGISTICS provider Global Logistic Properties (GLP) has snapped up a 15.5 per cent stake in China's largest state-owned warehouse logistics provider for 2 billion yuan (S$435 million), it said in a Singapore Exchange filing on Thursday.

The price GLP paid for shares of China Materials Storage and Transportation Development Company (CMSTD) works out to 5.86 yuan per share, a 43 per cent discount to CMSTD's last traded price on the Shanghai stock exchange on Dec 9, 2015.

The completion of the purchase has made GLP the second-largest shareholder of CMSTD, the group said in its statement. GLP also gets three out of 11 seats on CMSTD's board.

The deal was originally scheduled to be completed in "early 2015", according to a Singapore Exchange filing in August 2014.

GLP shares closed two cents down at $2.00 on Thursday before the announcement.