SingPost sells three printing and mailing businesses for S$64m

Singapore Post has sold off three printing and mailing businesses as it continues to position itself with more of a focus on e-commerce. SingPost said on Friday that it will sell a 90% stake in its hybrid mail business DataPost Pte Ltd to Hong Kong-based Jing King Tech Solutions Ptd Ltd for about S$39.3m ($29.5m USD).

The sale comes following last months’ divestment of SingPost’s Novation Solutions Ltd and DataPost (HK) Pte Ltd for S$24.4m ($18.3m USD).

All three of the businesses being sold are involved in secure printing, document management and transactional mail printing services.

SingPost will retain a 10% stake in the DataPost business, intending to continue its use of the business on behalf of its customers.

Singapore’s national postal operator said the sales form part of its strategy to focus on its growing e-commerce-related activities in the Asia-Pacific region, which now comprises around 28% of Group revenue.

The firm said it expected a gain of more than S$30m ($22.5m USD) from the sales of the three busineses, and that funds from the sales will be invested into further building SingPost’s capabilities in e-commerce.

“Strategic”

Dr Wolfgang Baier, the Group CEO of SingPost, said it comes following S$224m ($168m USD) of investment in his company’s e-commerce logistics capabilities during the past financial year.

“Through such strategic investments, we are scaling up to serve the needs of customers as online transactions gain further traction in today’s busy 24/7 lifestyles,” he said.

“This divestment is in line with that strategy which enables us to invest into a sustainable future as letter mail volumes decline.”

SingPost is currently ploughing S$182m ($137m USD) into the construction of its new Regional eCommerce Logistics Hub in Singapore, while expanding its island-wide network of parcel locker terminals, and also making improvements to its mail operations with investment in its sorting systems.

Woo Keng Leong, senior executive vice president and head of postal services at SingPost, said the sale of the three printing and mailing businesses will help to “entrench” the firm’s position as a market leader in the region.

But, he said the divestment would not impact on SingPost’s universal postal service commitments.

“We remain committed to our service obligations in Singapore as the national postal service provider, and have been investing significantly into postal infrastructure over the last few years to enhance our service quality and efficiency,” he said.

“Through our remaining stake in DataPost, we will continue to work with our partner to innovate and deliver quality service to our customers.”