By P.R. Venkat and Jake Maxwell Watts
SINGAPORE--Warehousing giant Global Logistics Properties Ltd. is seeking bidders for a possible acquisition of the $7.5 billion Singapore-listed firm, three people familiar with the matter said Thursday.
The move for a possible sale of GLP, which is the second-largest operator of warehouses in the U.S., was triggered by a request for a strategic review of the company's options by GLP's biggest shareholder, Singapore sovereign-wealth fund GIC Pte. Ltd. GIC owns 37% of GLP. GLP tapped J.P. Morgan Chase & Co. to conduct the review.
Potential bidders are supposed toexpress their interest by early February, one of the people said. The people said it is early in the process and that a deal may not happen.
GLP declined to comment. The company's stock rose 7.1% on Thursday to its highest level in 18 months, prompting the Singapore Exchange to ask GLP to explain the move. GLP subsequently halted trading in its stock pending the release of a further announcement.
GLP is one of the world's largest warehousing and distribution companies, growing in recent years through a series of acquisitions such as an $8.1 billion purchase, with GIC, of U.S. industrial-property owner IndCor from Blackstone Group LP.
GLP also has a substantial China portfolio, worth about $12.8 billion, including facilities in top-tier cities such as Beijing and Shanghai.
Demand for sophisticated logistics operations has grown on the back of the expansion of e-commerce globally. GLP has targeted the U.S. and China, the two biggest online-shopping markets for its expansion. It manages logistics assets worth close to $40 billion across the U.S., China, Japan and Brazil.
GIC is one of the world's biggest sovereign funds and has more than one-third of its investments in the U.S. It owns stakes in Citigroup Inc. and UBS Group AG. According to the Sovereign Wealth Fund Institute, GIC oversees about $344 billion in assets, making it the world's eighth-largest sovereign fund.
Kane Wu contributed to this article.
Write to P.R. Venkat at firstname.lastname@example.org and Jake Maxwell Watts at email@example.com
(END) Dow Jones Newswires
January 05, 2017 02:58 ET (07:58 GMT)
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