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ESR halts trading on potential take-private plan, sources say
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ESR halts trading on potential take-private plan, sources say
May 12, 2024 7:49 PM

HONG KONG, May 13 (Reuters) - Hong Kong-listed real

estate fund manager ESR Group ( ESRCF ), 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 U.S. 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.

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