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Hot stock: GLP jumps 22% to S$3.30 with S$3.38/share bid on the table
SHARES of Global Logistic Properties jumped 22.2 per cent, or 60 Singapore cents, to S$3.30 at 3.02 pm on Friday as trading resumed with a S$3.38 per share offer on the table.
The company's directors had announced just before trading began that they had picked the acquisition offer from a Chinese consortium following a lengthy strategic review.
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. GIC's undertaking, however, allows the investor to accept a higher competing bid if it comes along before the scheme meeting.
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 is also 64 per cent above GLP's trading level in November 2016, before the strategic review began.
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.