SINGAPORE Post has reinvested RM2.9 million (S$978,906) of dividends back into Malaysia-listed GD Express Carrier amid a pending divestment of about half its stake in the same company.
SingPost, Singapore's privatised national mail carrier, acquired an additional 2.1 million shares of GD Express at RM1.4181 apiece, or a 15.59 per cent discount to GD Express's closing price of RM1.68 on Feb 10. The reinvestment is a regular transaction taken by SingPost every year.
Following the reinvestment, SingPost will hold a 21.17 per cent stake in GD Express, comprising 292.79 million shares.
That shareholding will not last long, however. SingPost is in the midst of selling 137.42 million shares at RM1.74 each, or RM239.1 million in total, to Yamato Asia. That divestment is expected to trim SingPost's stake in GD Express, a logistics company, to about 11 per cent.
SingPost shares closed at S$1.35 on Wednesday, lower by 2.2 per cent or three Singapore cents, before the announcement.