It will redeploy cash into e-commerce operations.
Singapore Post will divest part of its stake in listed Malaysian logistics firm GD Express Carrier Berhad for $78.4 million.
SingPost will sell 137.42 million GDEX shares to Yamato Asia. SingPost holds 290.74 million GDEX shares, representing roughly 23.3% of the company’s issued and paid-up capital.
The Postman said that it will re-deploy capital into its e-commerce business.
“The last mile delivery is done by the Group’s own operations, international networks or partners. 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,” SingPost said.
SingPost is expected to recognise a net gain from the Proposed Disposal of approximately S$64 million after deducting the net asset value of the Sale Shares, professional fees, advisory fees and associated costs.
After the divestment, SingPost's net tangible assets will rise to $1.24 billion from $1.16 billion. Its attributable profit is also expected to surge to $207 million, and earnings per share will jump to 9.9 S cents per share.
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