SINGAPORE: Singapore sovereign wealth fund GIC and two other investors have entered into an agreement to invest a combined $700 million in US firm XPO Logistics, the American company said.
XPO Logistics said in a statement released in the United States on Thursday that it will use the funds from GIC, Canada's PSP Investments and the Ontario Teachers' Pension Plan "primarily for unspecified acquisitions".
The statement, posted on the GIC website, said the investors will hold about 22 percent of XPO Logistics after the deal, which involves the sale of newly issued common stock and preferred stock.
No breakdown of the investment was given.
"We have a favorable view on the US economy and on the US logistics industry," said Lim Kee Chong, GIC's deputy group chief investment officer and director of integrated strategies.
"We are confident that XPO's strong management team and sophisticated technology platform will enable XPO to become one of the long-term winners in the industry."
XPO Logistics, which provides freight transportation services, is based in Greenwich, Connecticut.
PSP Investments is one of Canada's largest pension investment managers, while the Ontario Teachers' Pension Plan is the biggest single-profession plan in Canada.
GIC, one of Singapore's two state-linked investment funds, manages the affluent city-state's foreign exchange reserves of well above $100 billion.
It has investments across 40 countries in such assets as equities, fixed income, real estate and private equity.
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