SINGAPORE -- Global Logistic Properties on Wednesday announced that it will be delisting from the Singapore Exchange on Jan. 22.
A consortium of Chinese investors in July offered to buy the warehouse operator for almost $12 billion.
Nesta Investment Holdings -- a vehicle owned by HOPU Logistics Investment Management, Hillhouse Capital Logistics Management, SMG Eastern, Bank of China Group Investment and Vanke Real Estate (Hong Kong) -- will acquire all of the issued and paid-up ordinary share capital of GLP.
Over 96% of GLP's shareholders in November voted for the company to delist, setting the stage for what will be one of Asia's largest private equity buyouts in recent years. The holders are expected to be paid for their shares by Jan. 19.
The offer also received the backing of GIC, a Singaporean sovereign wealth fund and the company's largest shareholder at 36.8%. GIC said it liked the price and certainty of the bid.
The buyout was one of last year's largest outbound transactions from China and came amid Beijing's anxiety over capital flight. According to financial data provider Dealogic, the total value of such deals announced in the first half of last year, including those pending, amounts to $73.67 billion, down 43% from a year earlier.
While the acquisition is seen as positive, GLP faces a bumpy road. Moody's Investors Service earlier this month downgraded the rating of Singapore's Global Logistic Properties Ltd. to Baa3 from Baa2, with a negative outlook.
"The downgrade of GLP's issuer rating to Baa3 reflects the consideration that GLP's financial risk has escalated," said Stephanie Lau, a Moody's vice president and senior analyst, in a note to investors.
The higher level of financial risk is due to an increase in Global Logistic Properties' debt leverage, which resulted from debt incurred after privatization and the acquisition of Gazeley, a European logistics portfolio.
