SingPost furthers its strategic ambition in Australia
Singapore Post (SingPost) is looking to buy a 38 % stake in Freight Management Holdings (FMH), a fourth-party logistics (4PL) service company incorporated in Victoria, Australia for A$85 million (S$84.1 million) in cash.
SingPost’s wholly-owned subsidiary SingPost Logistics Holdings entered into a conditional sale and purchase agreement on Oct 16 with existing shareholders of FMH, as well as a share subscription agreement with FMH for the stake purchase, SingPost said in a filing on Monday morning.
On completion of the acquisition, SingPost Logistics intends to set up a new holding company in Australia to hold its equity interest in FMH.
The company explained the investment in the filing: “Together with the SingPost Group’s other businesses in Australia – CouriersPlease as well as one of SingPost’s other Australian subsidiaries, Quantium Solutions Australia, an eCommerce logistics solutions provider – the SingPost Group is able to derive synergistic benefits, grow volumes and build scale.
The combination enables the SingPost Group to provide an end-to-end B2B2C logistics solution for customers serving both Business-to-Business (B2B) and Business-to-Consumer (B2C) channels, and provide a seamless logistics service within Australia and the wider Asia-Pacific region.
This provides a strong platform for the SingPost Group to drive revenue and earnings growth, as well as further its strategic ambition in Australia over the long term.”