Singapore Post Limited (SingPost) has announced an Extraordinary General Meeting (EGM) on 13 March 2025 to seek shareholder approval for the divestment of its Australia business, Freight Management Holdings Pty. Ltd. (FMH), to Pacific Equity Partners. The proposed transaction is valued at A$1.02b (approximately S$867.0mm).
The divestment is expected to generate a realised gain of approximately S$289.5m, with a levered return on equity of about four times SingPost’s A$93.6m equity investment in FMH over the past four years. FMH, a leading logistics provider, has grown significantly since SingPost’s initial investment in 2014, becoming one of the top five logistics players in Australia by revenue.
Simon Israel, Chairman of the Board at SingPost, stated, “This EGM provides our shareholders with the opportunity to vote on this important transaction, which we believe will unlock substantial value.”
The proceeds from the divestment, approximately A$775.9m (S$659.5m), will be used to repay borrowings, including Australian Dollar-denominated debt of A$362.1m (S$307.8m). Additionally, the Board is considering a one-tier tax-exempt special dividend, subject to the transaction’s completion.
Following the divestment, SingPost will focus on its Singapore and International business units, continuing as a postal and eCommerce logistics provider in Asia Pacific. The Board plans to reset its strategy post-completion, potentially divesting non-core assets to pay down debt and reinvest.
The EGM will allow shareholders to review and vote on the proposed divestment, with further details available in the Notice of EGM. If the proposal is not approved, the Board will reassess its strategy for the Australian business.
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