KKR, Blackstone, RRJ and TPG dropping out of race for S'pore's GLP, says FT

SINGAPORE (June 23): Almost all the potential bidders for Global Logistic Properties are dropping out as the June 30 deadline approaches, reported The Financial Times.

Private equity groups Blackstone, KKR, RRJ and TPG are among those that have decided against making a comprehensive offer, people involved in the process told FT.

“The reluctant bidders are worried that an insider bid led by GLP’s chief executive, Ming Mei, with a consortium that includes Fang Fenglei, a director of GLP, and a fund associated with Alibaba’s Jack Ma will make other submissions pointless,” FT quoted the people as saying.

“The process is a farce and the most unprofessional I have ever seen,” one private equity executive told FT. 

GLP has an enterprise value of US$19 billion (S$26.4 billion or RM81.49 billion). The auction is expected to generate proceeds of about US$10.5 billion.

In a response to the FT article, GLP did not deny the PE funds were losing interest. Instead it says that the strategic review is being undertaken independently and that the company has undertaken measures to alleviate potential conflicts of interest and ensure fairness of the process.

In its filing at noon, GLP also says the review is overseen by a Special Committee which comprises four independent directors of the company, with the assistance of JP Morgan (S.E.A.) as financial adviser and Allen & Gledhill LLP as legal adviser

“All Directors with a conflict or a potential conflict of interest have recused themselves from all decisions relating to the strategic review; and the company remains in discussion with shortlisted bidders,” it adds.

Shares in GLP were down 17 Singaporean cents at S$2.83 at noon break today. — theedgemarkets.com

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