ESR Group Faces Potential Take-Private Deal Amid Trading Halt

ESR Group, a real estate fund manager listed on the Hong Kong stock exchange, ceased trading its shares on Monday due to a potential takeover by a consortium of investors, according to three sources familiar with the situation.

Backed by U.S.-based private equity firm Warburg Pincus LLC, ESR announced in a stock exchange filing that trading had been halted pending an upcoming announcement regarding internal company information, in compliance with Hong Kong’s regulations on takeovers and mergers.

Sources revealed that a group led by financial investors is in discussions to privatize ESR, though they cautioned that these talks are still in preliminary stages and specific terms are yet to be finalized.

ESR has refrained from providing additional comments beyond its official filing, and the sources have chosen to remain anonymous due to the sensitive nature of the information.

Earlier reports from Bloomberg in February indicated that a group of ESR shareholders was exploring various options, including taking the company private, as per sources familiar with these discussions.

ESR’s core business revolves around managing portfolios of logistics assets.

As of Friday, ESR’s shares closed at HK$10, marking their highest level since March 4 and resulting in a market capitalization of $5.4 billion, based on data from the London Stock Exchange Group (LSEG). However, the shares have experienced a 7.4% decline this year, contrasting with the 11% rise of the Hang Seng Index, which serves as a benchmark for the region’s stock market performance.