GLP picks Chinese consortium's S$3.38 per share cash offer

GLOBAL Logistic Properties' (GLP) directors have picked a Chinese consortium and its S$3.38 per share offer for the logistics real estate developer, the company announced on Friday.

The offeror, Nesta Investment Holdings, is owned by HOPU Logistics Investment Management Co, Hillhouse Capital Logistics Management, SMG Eastern, Bank of China Group Investment and Vanke Real Estate (Hong Kong ) Co. Nesta's board of directors includes GLP chief executive and chairman Ming Z Mei.

Singapore sovereign wealth fund GIC, which owns a 36.84 per cent stake in GLP, has given an undertaking to support the bid, which will be carried out through a scheme of arrangement.

The offer price values GLP at about S$16 billion, which is about 25 per cent above GLP's closing price on July 12, which was the last trading price for the stock before it was halted. The offer price will not be reduced by GLP's proposed dividend of six Singapore cents per share, which was announced on May 19.

GLP will appoint an independent financial adviser to advise its independent directors on the deal.