GLOBAL Logistic Properties Limited (GLP) confirmed on Thursday that it is in preliminary discussions with various parties on a possible sale of the company.
But it emphasised that no definitive transaction has been entered into with any party, and there is no assurance that any transaction will materialise from the strategic review.
It had in December appointed JPMorgan Chase & Co to help conduct a strategic review of options to improve shareholder value, following a request from its single largest shareholder GIC, Singapore's sovereign wealth fund.
GLP's disclosure was in response to a trading query from the Singapore Exchange (SGX) after its shares jumped by as much as 9.4 per cent, hitting the highest intraday level since July 2015.
A Bloomberg report on Thursday said that GLP has begun formally reaching out to potential bidders and have asked for first-round offers by early February in an information letter sent out to targeted bidders last month.
The modern logistics space provider is said to have attracted interest from suitors after announcing a strategic review in December.
DBS vice-president for group equity research Derek Tan said that GLP is probably able to command a price premium, simply due to its unique sheer scale - being the second largest logistics property owner and operator in the US after Prologis, and the largest in China, Japan and Brazil.
GLP owns and operates a US$40 billion global portfolio of 53 million sq m of logistics space. For its funds platform, it has some US$39 billion of assets under management, of which US$26 billion has been invested.
GIC, which manages Singapore's foreign reserves, holds a 36.9 per cent stake in GLP, while Hillhouse Capital Management owns 8.2 per cent, according to Bloomberg data.
There were earlier rumours that GLP had drawn interest from an investor group including China Investment Corp (CIC), Hopu Investment Management and Hillhouse.
CIC, the Chinese wealth fund that manages some US$814 billion of assets, has previously partnered GLP for deals in Japan and Brazil. Hopu is a Beijing-based buyout firm founded by veteran dealmaker Fenglei Fang, who also owns a direct 1.59 per cent interest in GLP.