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SingPost unit's share of associated company to fall to 19.75% on new share issue
SINGAPORE Post’s subsidiary Quantium Solutions International (QSI) will see its equity shareholding of SingPost’s associated company Shenzhen 4PX Information and Technology Co (4PX) fall to 19.75 per cent from 30.52 per cent after additional new shares are issued.
This comes as 4PX has agreed to issue additional shares to existing shareholder Zhejiang Cainiao Supply Chain Management Co, subject to conditions. With that, although the number of 4PX shares held by QSI remains unchanged, QSI’s equity shareholding percentage in 4PX will be diluted to 19.75 per cent. 4PX will cease to be an associated company of SingPost.
Alibaba Group is the holding company of each of Cainiao and Alibaba Investment Limited. Alibaba Investment Limited owns 14.5 per cent of SingPost and 34 per cent of QSI.
In addition to the share subscription, Cainiao has agreed to make further cash contributions to 4PX in two tranches.
In the event that, subsequent to the Cainiao share subscription, either or both of the two tranches of cash contribution does not take place, shareholders of 4PX can seek to adjust their equity shareholding accordingly. This may result in QSI’s equity shareholding percentage in 4PX eventually being diluted to a lesser extent.
As at June 30, 2018, the book value of QSI’s current 30.52 per cent equity shareholding in 4PX is S$38.7 million. A further announcement in relation to the impact on the net tangible assets and earnings per share of SingPost for the financial year ending March 31, 2019 will be made in due course.