(Bloomberg) -- ESR Group Ltd.’s top shareholders are studying options for the Asian warehouse developer following major declines in the company’s shares, according to people with knowledge of the matter.

Some of ESR’s largest investors have been fielding pitches from potential advisers on options including taking the company private, the people said. ESR has also attracted preliminary interest from suitors looking at the company or some of its major assets, said some of the people, who asked not to be identified because the information is private.

Shares of Hong Kong-listed logistics firm jumped as much as 10.2% to HK$10.30 on Wednesday morning after the Bloomberg News report. The company has a market value of about HK$42 billion ($5.4 billion). 

ESR has lost about 67% in market value from its peak in early 2021, while Hong Kong’s benchmark Hang Seng Index has dropped about 44% over the period. The company’s major shareholders include its founders as well as Warburg Pincus and Omers Administration Corp., according to data compiled by Bloomberg.

No consortium has been formed as considerations are preliminary, the people said. There’s no guarantee the shareholders will proceed with a transaction, they added. A representative for Warburg Pincus declined to comment, while a representative for ESR couldn’t be reached for comment. Omers didn’t immediately respond to requests for comment.

Hong Kong’s stock market has been one of the worst-performing globally as investors grew wary of China’s economic outlook. The decline in market values has turned the city into an attractive destination for buyout deals.

China National Pharmaceutical Group Co. is considering potentially taking China Traditional Chinese Medicine Holdings Co. private, Bloomberg New reported earlier this month. Blackstone Inc. is also exploring a bid for skin-care company L’Occitane International SA, people familiar with the matter told Bloomberg News in February.

ESR manages real estate assets worth about $150 billion in markets including China, Japan, South Korea, Australia, Singapore, India and New Zealand, according to its website. The company raised about HK$14 billion in its Hong Kong initial public offering in 2019. Warburg Pincus held about 13.4% in ESR as of the end of 2022, according to an annual report. Omers owned about 10.3%, while founders and directors including Jinchu Shen, Charles de Portes and Stuart Gibson held around 22% in total. 

(Updates ESR’s stock price in third paragraph.)

©2024 Bloomberg L.P.