Global Logistic Properties (GLP) has selected the investor consortium led by its chief executive, Ming Mei, to hold final takeover talks for the Singapore-listed logistics specialist, a person involved in the sales process has confirmed to PERE.
Mei’s bidding group, which includes Beijing-based private equity firms Hopu Investment Management, Hillhouse Capital Group, and the Chinese property developer China Vanke, is reportedly planning to bid S$3 per share for GLP, valuing the business at around $10 billion, according to a Bloomberg report that first broke the news, citing people familiar with the deal.
If the takeover is successful Mei’s group will take ownership of one of the world’s largest logistics operators. GLP has a global portfolio of 55 million square meters across China, Japan, US and Brazil, and its fund management platform has $39 billion in assets under management.
The Chinese consortium beat out ESR, the entity formed out of a merger between the Redwood Group and e-Shang, which was the only other shortlisted bidder for GLP.
Spokespeople from GLP, China Vanke and ESR all declined to comment.
The sales process had come under criticism last month, with press reports revealing some of the bidders’ reservations with regards to Ming Mei’s bid, who they believe has an unfair advantage in the sales process. Blackstone was also believed to have been on GLP’s shortlist, but the reasons for it to drop out is not known.
Responding to criticism that the process unfairly favored Mei’s bid, GLP said the review was being undertaken independently and measures were in place to alleviate potential conflicts of interest.
A special committee, consisting of four independent directors and chaired by Seek Ngee Huat, chairman of the GLP board, is in charge of evaluating any offers.
GLP said all its directors with a conflict or a potential conflict of interest had recused themselves from decisions relating to the sales process.
The sales process started 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.