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TRANSPORT & LOGISTICS | Staff Reporter, Singapore
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Should investors be worried over SingPost’s corporate governance woes?

It might be an honest mistake, analysts say.

SingPost remains on track for growth although has been singled out for corporate governance issues after failing to disclose a director’s interest in an acquisition, according to a report by CIMB.

SingPost failed to note that its lead independent director, Keith Tay Ah Kee, is the non-executive chairman and a shareholder of Stirling Coleman Capital. Stirling Coleman arranged SingPost’s acquisition of FS Mackenzie and Famous Pacific in 2014.

According to CIMB, SingPost’s lapse might have been an honest mistake on the company’s part, as the deals occurred amidst multiple changes in the Company Secretary role from 2013-2015.

“We think it could have been a case of a slip up, rather than an intentional effort to withhold the information. We think these [price-to-equity] multiples are fair and in line with peers, and see no foul play in terms of inflating the transaction value,” said CIMB.

These lapses have been exacerbated by the abrupt resignation of SingPost’s CEO, who will vacate his post by 30 June 2016 or earlier.

However, CIMB believes that SingPost’s business transformation remains on track.

“With key management at the individual business level still intact, we expect business as usual and no change in strategy despite the CEO’s departure,” said CIMB.
 

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