Singapore Post Limited (SingPost) has announced the successful completion of its divestment of Freight Management Holdings (FMH) to Pacific Equity Partners, marking a pivotal step in its strategic review. The transaction, valued at A$1.02b (approximately S$867m), received overwhelming support with a 99% shareholder vote at the Extraordinary General Meeting on 13 March 2025.
The sale, resulting from a competitive international bidding process, generated gross proceeds of approximately A$781.5m (S$664.2m) and is expected to yield a gain of S$289.5m for SingPost. This reflects a remarkable levered return on equity of about four times the company’s A$93.6m investment in FMH over the past four years.
SingPost plans to utilise the proceeds to reduce debt, including repaying A$362.1m (S$307.8m) in borrowings related to the FMH acquisition. The company also intends to announce a Special Dividend in compliance with SGX-ST listing rules.
This divestment necessitates a strategic reset for SingPost, with future earnings relying on its Singapore Postal and eCommerce Logistics business, as well as its International eCommerce Logistics operations. The company also holds two major non-core assets, SingPost Centre and Famous Holdings, which continue to perform well.
The successful sale of FMH, along with potential future divestitures, is expected to create a significant cash pool, enabling SingPost to reinvest in its future, reduce debt, or return proceeds to shareholders, aligning with shareholder interests.
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