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SingPost to reduce stake in GD Express Carrier

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Singapore Post (SingPost) has entered into a conditional shares sale agreement with Yamato Asia, a wholly-owned subsidiary of Yamato Holdings Co, to pare its stake in its associate company GD Express Carrier (GDEX) for a total of RM239.1 million (about S$78.4 million).

SINGAPORE Post (SingPost) has entered into a conditional shares sale agreement with Yamato Asia, a wholly-owned subsidiary of Yamato Holdings Co, to pare its stake in its associate company GD Express Carrier (GDEX) for a total of RM239.1 million (about S$78.4 million).

SingPost - which currently holds some 290.74 million shares or a stake of 23.3 per cent in GDEX - is selling 137.42 million shares at RM1.74 per share.

The deal is subject to the completion of a private placement of about 124.89 million shares to Yamato Asia by GDEX, representing 9.09 per cent of GDEX's enlarged capital. Following which, SingPost's stake in GDEX will decrease to 11.2 per cent.

"The reduction in the stake will free up capital to allow the group to further invest in its eCommerce logistics operations across the region including its eCommerce logistics warehousing capabilities in Malaysia through its regional logistics arm Quantium Solutions," said SingPost. "The group will continue growing its networks in all Southeast Asia markets. As the group has interlinked systems with GDEX, it will continue to be an important last mile delivery partner for SingPost's one stop integrated eCommerce logistics offering."

sentifi.com

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SingPost is expected to recognise a net gain of approximately S$64 million after deducting the net asset value of the sale shares, professional fees, advisory fees and associated costs.

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