More questions about corporate governance at SingPost

ON Dec 15, The Business Times published a commentary highlighting my corporate governance concerns at Singapore Post (SingPost). That commentary focused mainly on its board composition (including size; independence; skills and experience; tenure of directors; and board renewal), clarity between the board's and management's roles, turnover of senior management, and transition plans.

As mentioned in the earlier commentary, I am a shareholder of SingPost. I have also followed with some interest its recent acquisitions and having now reviewed some of these acquisitions and the disclosures relating to them, I believe there are other issues that require clarification and explanation from SingPost.

On Jan 18, 2013, SingPost announced that it had entered into a share purchase agreement under which it will acquire 62.5 per cent of the total issued shares of Famous Holdings Pte Ltd (FHPL) with an option to purchase the remaining 37.5 per cent of the shares (the seller also has a put option on the remaining shares). FHPL is described as a "Singapore-based sea freight consolidator and freight forwarder . . . with offices in Singapore, Japan, Australia, China, Malaysia and the USA". SingPost was to pay up to S$110 million for the initial shares and the shares under the option. The net asset value (NAV) of FHPL as at Dec 31, 2011 was S$12.3 million.