News
UTILITIES | Staff Reporter, Singapore
view(s)

Alibaba gets SingPost investment approval

The $187.1m investment ups Alibaba’s stake in SingPost to 14.4%.

Regulatory approval from IDA has been obtained for Alibaba’s second investment in Singapore Post. According to OCBC Investment Research, Alibaba's $187.1m investment will increase its stake in SingPost from 10.2% to 14.4%. The brokerage firm noted that is likely to be completed by 28 Feb 2017, in light of the timeline required to obtain the remaining approvals from SingPost’s shareholders at an EGM and from the SGX for the listing of the new shares.

"This is a positive development for SingPost, as one of the uncertainties for the stock is now put to rest, and this could result in a positive knee-jerk reaction on the share price," the firm noted. Singapore Post also announced that it has completed the joint venture with Alibaba in which Alibaba has invested S$86.2m for new Quantium Solutions shares, SingPost’s logistics subsidiary, making up 34% of the company. Looking ahead, the OCBC noted that the dividend policy is likely to be revised downwards, but more importantly time is still needed for integration and synergies for substantial earnings growth following the group’s earlier acquisitions.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.