Hong Kong-listed real estate fund manager ESR Group, which halted trading in its shares on Monday, is subject to a potential take-private deal by a group of investors, three sources with knowledge of the matter said.
ESR, which is backed by US private equity firm Warburg Pincus LLC, said in a stock exchange filing trading was halted pending an announcement about inside information of the company and pursuant to the Hong Kong code on takeovers and mergers.
A group led by financial investors is planning a deal to take ESR private, the sources said, cautioning that discussions were at an early stage with terms to be finalised.
ESR declined to comment any further than its filing. The sources declined to be identified as the information was confidential.
Bloomberg reported in February a group of ESR’s shareholders was exploring options that included a privatisation of the Hong Kong-listed company, citing sources familiar with the discussions.
ESR primarily engages in the management of logistics asset portfolios.
The company’s shares closed at HK$10 on Friday, the highest since March 4, reaching a market cap of $5.4 billion, LSEG data showed. The shares have fallen 7.4% this year, compared with an 11% increase of the benchmark Hang Seng Index.
Reuters