GLP

GLP: As covered yday, co acquired 53% stake in China’s Airport City Dev (ACL), the sole developer of cargo handling and bonded logistics at Beijing Intl Airport, paying Rmb2.5b of which approx Rmb1.0b in cash and Rmb1.5b in shares at issue price $2.1581. Co highlights China’s fragmented logistics industry and is looking out for more acquisition opportunities in 2nd tier China cities such as Wuhan, Zhengzhou and Xiamen, likely to pay cash than issue equity for payment...

ACL has only formally operated since 20 Dec but has secured rents 3 times more than normal warehouses, resulting in an attractive acq for GLP. This is probably due to advantage of being a monopoly to the airport’s business. An deal for 19.9% of Shenzhen Chiwan Petroleum was made earlier. Recent acquisition adds to co’s core businesses and can expect further acquistions to drive growth in operations.