Legal counsel issues summary report on SingPost’s TradeGlobal acquisition

Legal counsel WongPartnership has issued its summary report outlining its observations regarding Singapore Post’s acquisition of TradeGlobal Holdings. As previously reported, SingPost ordered a review because it had to take an impairment for TradeGlobal because the e-commerce specialist was underperforming.

SingPost bought 96.3% of TradeGlobal for US$168.6m on 15 October 2015.

The summary report (which provides initial observations in advance of a full report) noted that the due diligence in TradeGlobal’s acquisition was not fully documented and it also flagged up that the valuation for TradeGlobal was significantly higher than the price Bregal Sagemount paid for the company back in 2013.

The summary report also noted: “The significant underperformance in the years immediately prior to the TG Acquisition, in view of the Aggressive Forecast Risk, warranted greater scepticism as to the achievability of the forecasts, and a more conservative valuation of TG may have been arrived at following an examination in greater detail of previous and current forecasts.”

Click here to view a statement from SingPost, published yesterday (17 July), which includes the WongPartnership Summary Report in its Appendices.