Alibaba and SingPost strengthen ties
Singapore Post’s (SingPost) ties with Alibaba were strengthened today as the Chinese online giant’s S$86.2m investment in SingPost’s logistics subsidiary Quantium Solutions International (QSI) was completed, and regulatory approval for Alibaba’s second investment in SingPost was obtained. The ownership of QSI, which is focused on being a common platform to grow and enhance e-commerce logistics capabilities in Southeast Asia and Oceania, is now split 66%/34% between SingPost and Alibaba respectively.
QSI currently operates in 11 markets, providing a suite of end-to-end e-commerce solutions that includes warehousing, fulfilment, and last mile delivery.
Simon Israel, Chairman of SingPost, said: “The completion of the QSI joint venture underscores the deepening relationship and commitment between both companies to build a leading eCommerce logistics platform together across the region. Both Alibaba and SingPost are confident in the long-term value of collaborating to serve the region’s fast rising eCommerce logistics needs.”
Daniel Zhang, Chief Executive Officer of Alibaba Group, said: “Our enhanced collaboration with SingPost is another strategic step towards strengthening the fundamental infrastructure for digital commerce that will empower brands and retailers to sell globally through the Alibaba ecosystem. A robust logistics network is vital to helping our merchants successfully serve the vast population across Southeast Asia and Oceania, and realise Alibaba’s vision to ultimately serve two billion consumers worldwide.”
Alibaba first became a SingPost shareholder in 2014. Now, the Info-communications Media Development Authority (IMD) has given its approval for Alibaba to increase its interest in SingPost to 14.4%, from 10.2% currently.
In its statement sent to Post&Parcel today, SingPost added: “Alibaba’s further investment of S$187.1m into SingPost is targeted to be completed by 28 February 2017, in light of the timeline required to obtain the remaining approvals from SingPost’s shareholders at an Extraordinary General Meeting and from the Singapore Exchange for the listing, quotation and trading of new shares on the Main Board of the SGX-ST.”
Sam Ang, CEO of Quantium Solutions will be speaking at the World Mail & Express Asia Conference in Singapore on November 14-16. Visit the conference website and book your tickets today – www.wmxasia.com