Tag: Asia

China Postal eyed for next big bank IPO

Posted by | May 8, 2007 | |

Investment bankers hunting for the newest big game in China’s financial services market are circling the reborn China Postal Savings Bank, the mainland’s fifth-largest lender by deposits.

China Postal was relaunched as a retail-focused bank in March with 1.6 trillion yuan (USD 208 billion) in deposits. Its predecessor, the postal savings bureau, could not lend and most of those deposits wound up with the central bank.
Armed with a new mandate and a plan to restructure its 36,000-branch network, China Postal has been talking to investment bankers about a 2008 IPO in the range of USD 2-USD 3 billion, sources have said.

Some bankers call that kind of talk premature, saying China Postal is more likely to hire advisers on a further restructuring as a precursor to an IPO, perhaps also bringing on strategic investors.

Bankers agreed that any deal would not happen until 2008, at the earliest.
But the draw of the public market is compelling: CITIC Bank Corp., China’s No.7 lender, raised USD 6 billion in a simultaneous Hong Kong-Shanghai offering last month.

Its domestic A shares are up 75 percent from the 5.80 yuan offer price, while its Hong Kong H shares are up 8 percent.

The disparity in performance prompted one foreign investor to call one of the underwriters and jokingly request that his allocation be made in A shares rather than H shares.

China Postal would also be keen on a simultaneous listing, one source said. Such listings are becoming more popular now that two have been achieved, and Beijing is keen to develop the mainland capital markets.

“When it does happen, it’s going to be huge,” said one banker who has spoken with China Postal management about a deal. “But this is going to be a long gestation period.”

Read More

SingPost Enters into Joint Venture for Print-on-Demand Business

Posted by | May 4, 2007 | |

Singapore Post Limited (SingPost) announced that its wholly-owned subsidiary, Singapore Post Enterprise Private Limited, has entered into a joint venture agreement with Global Print on Demand Network International Ltd (GPN International) and Oce Singapore Private Limited (Oce) to engage in the business of Print-on-Demand.

A joint venture company, GPN Asia Pte Ltd, will be incorporated in Singapore, which will print in Singapore and distribute to the region. SingPost will have 20% equity in the joint venture with an initial investment of €200,000 for the subscription of ordinary shares in the capital of GPN Asia Pte Ltd.

Oce and Euradius will hold 20% and 60% stake in GPN Asia Pte Ltd respectively, also through capital injection. GPN International, a subsidiary of the Dutch incorporated company, Euradius International B.V., is largely in the printing business, with specific expertise in the field of Print-on-Demand technology.

Read More

Japan Post actively joining hands with private-sector firms

Posted by | May 2, 2007 | |

Japan Post Corp., a planning company for the breakup and privatization of state-owned Japan Post, has been scrambling to team up with private financial service firms to ensure smooth launches of new products.

The partnership efforts may also be aimed at dodging criticism that a privatized group could crowd out private-sector businesses, sources close to the matter said.

Japan Post will be broken into a “Yucho” postal savings bank, a “Kampo” insurance firm, a mail delivery firm and a post office network management company in October as the first step of a 10-year privatization process. Japan Post Corp., as a government-controlled holding company, will own those firms.

In the run-up to the breakup, the planning firm last month asked life insurance companies to provide variable annuity products for sale through Yucho bank offices, starting as early as May 2008.

Variable annuities will be a key addition to the menu of financial products at the Yucho bank to complement postal savings and investment trust funds Japan Post now offers as mainstay fund management vehicles for individuals.

The planning company also eyes tie-ups with JCB Co. and Sumitomo Mitsui Card Co. for the planned launch of Yucho bank-brand credit cards. It is also considering having the bank offer housing loan products of partner companies in a bid to accumulate knowhow in the business field, Japan Post Corp. officials say.

The post office network management company, which will take over 24,000 post offices nationwide, will seek to expand earnings through the sale of auto insurance products, initially at 23 post offices in the Tokyo metropolitan area at the October launch of the firm. Seven nonlife insurers are already set to provide their products to the firm.

Read More

Japan Post business plan to create giants

Posted by | May 1, 2007 | |

The Japan Post group, to be born via privatization in October, will consist of five companies that will dwarf or equal private-sector rivals, according to a business plan submitted to the government.

The plan, sent for approval Friday to internal affairs minister Yoshihide Suga by Japan Post Corp., a privatization preparatory firm, expects the Japan Post group’s net profit to hit 587 billion yen in fiscal 2011, exceeding the 500 million yen of the NTT group–one of Japan’s largest corporate entities.

The group’s five companies will have a total 241,400 employees, compared with NTT’s 200,000.

The Japan Post group will consist of a holding company and four operating firms, each of which will be in charge of mail delivery, post office management, postal savings and postal life insurance.

The four operating companies will exceed, or at least equal, the biggest players in the private sector in their respective fields.

The postal savings bank, for example, is expected to manage 164 trillion yen in deposits in fiscal 2011. The balance will nearly equal the combined deposits at two of the nation’s three largest financial groups–Mitsubishi UFJ, with 100 trillion yen, and Mizuho, with 70 trillion yen.

The postal bank will be the Japan Post group’s key money maker, projecting 304 billion yen in net profits in fiscal 2011.

To stem the decline in profits, the postal bank plans to offer new businesses, such as housing loans and credit cards as early as next year, a move that is likely to heat up competition with private-sector rivals.

The postal life insurer plans to boost profits from its fund management amid rising interest rates.

By contrast, the mail delivery company and the post office management company, which have more than 100,000 employees each, expect modest profits.

The mail delivery company plans to enter the direct mail service sector, which is the turf of private home delivery companies.

To attract customers to its outlets, the post office management company will sell life and nonlife insurance products offered by private insurers

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest