Herbert Smith Freehills Kramer advises Citigroup on landmark US$7.1 billion ESR privatisation

Leading global law firm Herbert Smith Freehills Kramer has advised Citigroup Global Markets Asia Limited as exclusive financial adviser to ESR Group Limited on its US$7.1 billion take-private transaction - the largest privatisation on the Hong Kong Stock Exchange since 2021.

ESR, a leading Asia-Pacific real asset owner and manager, officially delisted from the Hong Kong Stock Exchange on 3 July. The transaction values the company at HK$55.2 billion on an equity basis, with shareholders receiving HK$13 per share under the cash consideration alternative.

The deal transfers ownership of ESR to a newly formed shareholder consortium including Starwood Capital Group, SSW Partners, Sixth Street, Warburg Pincus, Qatar Investment Authority, and ESR’s founders. Select investors such as OMERS and Sumitomo Mitsui Banking Corporation have rolled all or part of their equity into the privatised entity.

Hong Kong corporate partner Tommy Tong led a team advising Citigroup, supported by associates Eric Yeung and Yusra Jafar. "We’re proud to have supported Citigroup on this landmark transaction, which marks the resurgence of private capital-led solutions across Asia," said Tommy. 

"This deal also speaks to the growing sophistication of strategic take-privates, and the increasing demand for agile structures that can unlock long-term value."

The privatisation accelerates ESR’s strategic transformation into a streamlined platform focused on high-growth sectors such as logistics and data centres, backed by its APAC infrastructure and long-term capital partnerships.