GLP confirms takeover talks

Shares in the Singapore-listed logistics investment manager rocketed 7% on the back of a report saying it is in talks with various potential buyers.

Global Logistic Properties (GLP), the Singapore-listed logistics investment manager, has confirmed that it is in preliminary discussions with various parties in connection with a possible sale.

In an announcement on the Singapore Stock Exchange (SGX), GLP confirmed a Thursday report from the Wall Street Journal that it is looking in to a sale as one option under a continuing strategic review.

Shares of GLP rocketed, this time by more than 7 percent, on the back of the WSJ’s report, prompting the SGX to ask GLP to explain the trading activity. GLP confirmed talks of a possible sale and subsequently GLP halted trading in its stock yesterday. Shares were priced at $2.40 when trading ceased in Thursday but at the time of press GLP shares were priced at $2.46 after trading re-opened Friday morning.

However, GLP also emphasized that “no definitive transaction has been entered into by the company with any party and there is no assurance that any transaction will materialize from the strategic review”.

Back in early December the firm hired JPMorgan to undertake an independent 'strategic review following a request received from its largest shareholder, the Singaporean sovereign wealth fund GIC Private, after GLP’s stock price rocketed on the back of speculation it is a takeover target following an article published first by Bloomberg.

The report said Chinese sovereign wealth fund China Investment Corporation (CIC) and two Chinese investment firms, Hopu Investment Management and Hillhouse Capital Management, have held talks about making a joint offer to acquire GLP, citing people with knowledge of the matter. However, GLP released a statement at the time denying it is in takeover talks with the consortium.

GLP is a leading global provider of modern logistics facilities. The firm’s $38 billion property portfolio encompasses over 560 million square feet of logistics facilities across China, Japan, Brazil and the US. GLP is a SGX-listed company with a market capitalization of around $7.5 billion.