Government of Singapore Investment Corp. is seeking to raise as much as S$1.6 billion ($1.3 billion) selling part of its stake in Global Logistic Properties Ltd., according to a term sheet sent to investors.
GIC, Singapore’s sovereign wealth fund that’s Global Logistic’s biggest shareholder, is offering 595.7 million shares at S$2.60 to S$2.66 apiece, according to the term sheet obtained by Bloomberg News. That’s as much as a 5.5 percent discount from Global Logistic’s closing price of S$2.75 today.
The stake on offer is about 13 percent of the total shares outstanding of Singapore-based Global Logistic, according to data compiled by Bloomberg News. JPMorgan Chase & Co, is the only bookrunner on the sale, according to the document. Global Logistic is the biggest owner of Japan industrial properties.
“It looks like a measure of portfolio management by GIC and that they are creating more liquidity,” said Donald Chua, a Singapore-based analyst at CIMB Research Pte. “I don’t believe that there is fundamentally anything wrong with the company.”
Jennifer Lewis, a spokeswoman at GIC, declined to comment on the report. The fund manages more than $100 billion of the city’s reserves.