SingPost’s sale of its Australia business raises questions about its long-term strategic direction
The group may just continue to muddle along, occasionally tapping its balance sheet to invest in new businesses, but ultimately failing to garner a much higher market valuation
[SINGAPORE] At Singapore Post’s (SingPost) annual general meeting (AGM) on Jul 23, its outgoing chairman Simon Israel hailed the divestment of the group’s Australian logistics business, Freight Management Holdings (FMH).
Completed in March, the transaction pegged FMH’s enterprise value at A$1.02 billion (S$897.6 million), and saw SingPost rake in gross proceeds of approximately A$781.5 million. This week, on Aug 14, SingPost will pay a special dividend of S$0.09 per share – representing two-thirds of the reported gain on disposal of S$302.1 million from the deal.
“Looking back, the timing of this transaction has served us well,” Israel said, in a speech at the AGM.
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