SingPost Completes Sale of FMH
Singapore Post Limited has announced the successful completion of the divestment of its Australian logistics business, Freight Management Holdings to Pacific Equity Partners.
The sale, valued at an enterprise value of A$1.02 billion (approximately S$867.0 million), marks a significant milestone in SingPost’s Board-led Strategic Review to unlock value for its shareholders.
The transaction follows overwhelming approval at the Extraordinary General Meeting (“EGM”) held on March 13, 2025 where the resolution secured shareholders’ 99% vote in favor. The divestment, resulting from a highly competitive international bidding process, generated gross proceeds of approximately A$781.5 million (S$664.2 million) and an expected gain of S$289.5 million1 for the Group. This reflects a levered return on equity of approximately 4 times the SingPost Group’s A$93.6 million equity investment in FMH over the last 4 years.
Proceeds Allocation, Strategic Reset & Future of Options
SingPost has indicated it will allocate the sale proceeds towards reducing debt, including the repayment of A$362.1 million (S$307.8 million) in borrowings related to the FMH acquisition. Additionally, the Board will in due course disclose the amount of the Special Dividend in compliance with the SGX-ST listing rules.
The sale necessitates a strategy reset for the Group, with earnings in the interim dependent on SingPost’s Singapore Postal / eCommerce Logistics business, the International eCommerce Logistics business and two major non-core assets – the SingPost Centre and Famous Holdings – both of which have been performing well.
The successful divestment of the Australia business, along with potential future divestitures, will create a significant cash pool. This will allow SingPost to reinvest in its future, reduce debt, or return proceeds to shareholders, with the Board ensuring these options align with shareholder interests.
