Text size The long-running saga of Global Logistic Properties’ (MC0.SG) private equity buyout could be about to get longer. The proposed sale of the Singapore-based warehouse and logistics giant has reportedly hit a snag over future control of its China assets. The Financial Times reports that only two bidders submitted offers for the company last week, and one of them is already considering withdrawing from the process. Citing people familiar with the matter, the paper says that Warburg Pincus is worried about a 2014 deal that sold about one third of GLP’s China business to a group including chief executive Ming Mei and Beijing’s Hopu Investment Management. That arrangement in effect gives that group a veto over certain things GLP’s new owner may want to do with the Chinese assets, like issuance of new shares and payment of dividends, the FT says. Making things even juicier is the fact that the only other bidder last week was… you guessed it: A group fronted by Mei and Hopu. It looks like the sale of GLP is getting increasingly complex: Shares in GLP slipped 1% in Singapore trading Tuesday morning. The stock’s returned 55% over the last 12 months, versus 11% for the Lion City benchmark.
The proposed sale of Singapore-based warehouse operator Global Logistic Properties (GLP) has hit a snag due to concerns about the future control of its Chinese assets. Only two bidders have submitted offers for the firm. One bidder, Warburg Pincus, is worried about a 2014 deal that sold around a third of GLP's China business to a group including CEO Ming Mei and Beijing's Hopu Investment Management, which effectively allows this group a veto over certain areas of GLP. Furthermore, the other bidder is another group fronted by Mei and Hopu. Investors are concerned that terms relating to the sale of the stake were not fully disclosed.