Singapore Post expands stake in Malaysian express carrier
Singapore Post has invested around $14.8m USD to expand its shareholding in Malaysian express delivery company GD Express (GDEX). The acquisition-hungry postal operator, which has been looking to diversify and expand through mergers and acquisitions in the region, paid a little more than 45.5m ringgit for 56.8m shares in GDEX on Tuesday.
The additional 22.1% stake in the company took SingPost’s overall ownership of the express carrier to just over 27%.
GDEX, which is listed on the ACE Market of the Bursa Malaysia Securities exchange, is one of the largest domestic express delivery and logistics firms in Malaysia.
Formed in 1997 and based in Petaling Jaya, in the Greater Kuala Lumpur area, GDEX has 1,300 staff operating a hub-and-spoke network spreading across east and west Malaysia with 96 stations and 280 vehicles.
SingPost said the acquisition would see GDEX effectively becoming an associated company of SingPost, although directors at GDEX said there would be no change “financially and operationally” within the company from the change in ownership.
Ng Hin Lee, SingPost’s chief executive officer for Postal and Corporate Services, who also oversees the company’s acquisitions, said the investment in GDEX would enhance the SingPost network and help his company to tap the growing logistics market in the region.
He said: “We have been collaborating with GDEX in the logistics business. SingPost and GDEX have a good working relationship and we are both excited with the opportunity to collaborate, tap and leverage each other’s resources to expand and grow in Malaysia and in the region.”
GDEX confirmed that the share sale had been completed on 15 March 2011.
In a statement, the company said: “To the best of knowledge of the Board of Directors of GDEX, they do not foresee any impact on GDEX’s business, financially and operationally, as a consequence of the change in substantial shareholders.”
