Global Logistic Properties is proposing to purchase a 53.14%
stake in Airport City Development Co Ltd (ACL) for
RMB2483m. ACL is the sole developer in the Beijing Capital
International Airport (BCIA) air cargo handling and bonded
logistics area. The deal is the 2nd acquisition within 3 months
of listing, and will be funded by an issue of new shares (57%)
and cash (43%). This will result a 2.8% expansion in share
capital. This acquisition will strengthen portfolio and market
position, and is also earnings and valuation accretive.
Maintain Buy, TP S$2.76.