SingPost AGM: chance to ask about goodwill issues
MUCH has been said already about the fateful acquisitions that recently thrust Singapore Post's corporate governance into the public spotlight, led to a special audit that unearthed weak controls on directors' disclosure of conflicts of interest and raised questions over whether those lapses could have paved the path for the group to overpay for acquisitions.
Aside from the qualitative governance issues, though, there are some interesting numbers buried in its latest annual report released last week that could also warrant a closer look from shareholders, ahead of the postal and e-commerce group's upcoming annual general meeting on July 14.
These figures are to do with the assumptions underlying the goodwill it has forked out for several of its purchases - not only for freight forwarders Famous Holdings, FS Mackenzie and Famous Pacific Shipping (NZ) Limited, but also for more recent ones such as e-commerce firms TradeGlobal and Jagged Peak. Specifically, even though SingPost slashed its assumed average cash flow growth rates for the three Famous acquisitions and a few others for its financial year ended March 2016 (FY16) from FY15, it has not taken any impairment on goodwill despite keeping dis…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO
Danone beats Q1 sales forecasts, keeps 2024 goals
Concord to buy Hipgnosis in US$1.4 billion deal
Nokia sees stronger H2 after Q1 comparable profit grows less than expected
TSMC posts first profit growth in a year after global AI boom
Latest Singapore one-year T-bill offers cut-off yield of 3.58%