On July 14th, 2017, Asia’s warehouse giant, Global Logistic Properties Limited (“GLP”, MC0.SI), announced its plan to choose a Chinese consortium to pursue privatisation and delisting from the Mainboard of the Singapore Exchange via scheme of arrangement. According to the announcement, the consortium offered to acquire the company at S$3.38 per share, with overall consideration at around US$11.6 billion (S$16 billion). The offer price is at approximately 81% over GLP’s 12-month volume weighted average price, and exceeds GLP’s historical high since its IPO in 2010. Shareholders are expected to realise a reasonable premium through the offer. The acquisition will be the largest private equity buyout of an Asian company by enterprise value.

GLP’s largest shareholder – Singapore sovereign-wealth fund GIC (holding 37% of GLP) is committed to vote in favour of the offer. Should all procedures go smoothly, GLP is expected be delisted before mid-April, 2018.

The transaction draws significant market attention as a result of GLP’s market leading position and sheer size of the deal. GLP is the world’s No.2 and Asia’s No.1 logistics warehouse provider and operator; the company owns and manages a US$39 billion portfolio of over 55 million sqm of warehouses and other logistics facilities in China, Japan, Brazil and the United States. GLP also occupies leading position in the markets it operates - No.1 in China, Japan and Brazil, No.2 in the US. In particular, GLP takes an absolutely dominant position in China, with operational warehouses exceeding the sum of the next 9 players.

The Chinese consortium is made up of prestigious institutions, including leading Chinese real estate company Vanke (21.4%), prominent investors HOPU and Hillhouse (21.3% and 21.2%), GLP’s CEO Mr. Ming Z. Mei (21.2%), and Bank of China Group Investment (15%).

CICC is serving as financial advisor for the Chinese consortium, and remains the only Chinese investment bank involved in the transaction. Ever since GLP’s IPO in 2010, CICC has been closely involved in the company’s capital market activities. Last year, CICC assisted GLP China to innovatively tap China capital market with the issuance of an RMB150 million Panda Bond.

For CICC, the transaction is set to be yet another large privatisation after the delisting of Dalian Wanda Commercial Properties, Intime Retail Group, and STATS ChipPAC. It will further elevate CICC’s status and reputation in the global capital market, consolidate CICC’s “Chinese Roots, International Reach” growth strategy. It will also be a landmark transaction in CICC’s active approach to facilitate capital flows and capital market activities amongst countries along the Belt and Road.