GLP seeks final proposals from bidders

Singapore

GLOBAL Logistic Properties Limited (GLP) has invited short-listed bidders for the company to submit their firm proposals by June 30 for final evaluation. The special committee will evaluate the proposals in consultation with the group's external advisers.

"As part of this evaluation, the special committee will conduct an in-depth review of all terms of the proposals, prior to making a recommendation which maximises value for all shareholders," GLP said on Thursday in an update of its strategic review. In December 2016, GLP said it had formed a special committee, consisting of four independent directors, to oversee the strategic review of its options. It also appointed JP Morgan (SEA) as its financial adviser in the strategic review.

Various non-binding proposals were received from a number of parties. GLP's special committee had evaluated them and shortlisted the bidders to conduct due diligence on the company.

Its chief executive Ming Z Mei and non-executive director Fang Fenglei are among interested parties that have submitted the proposals, and have since recused themselves from all board discussions and decisions relating to the strategic review. They are believed to be part of the consortium with Beijing-based Hopu Investment Management, founded by Mr Fang, and Hillhouse Capital Management. There were also rumours that US private equity giants Warburg Pincus and The Blackstone Group were each forming a consortium to make an offer for GLP.

GIC, which manages Singapore's foreign reserves, holds a 36.9 per cent stake in GLP while Hillhouse Capital Management owns 8.2 per cent. American activist hedge fund Eliott Management raised its stake in GLP to 5.1 per cent last month.

GLP shares have rallied since the news of its strategic review, lifting the share price from a 20 per cent discount to book to a 14 per cent premium, Bloomberg data shows.

The stock closed one cent higher at S$2.94 on Thursday.