The postal company’s investment provides springboard into Vietnam and Indo-China market.
Singapore Post Limited (“SingPost”) on Tuesday announced it will acquire a 30% stake in Indo Trans Logistics Corporation (“ITL”) through its wholly-owned subsidiary, Singapore Post Enterprise Private Limited (“SPE”), for US$10.8 million.
ITL, incorporated in Vietnam, offers integrated logistics solutions with businesses in air and sea freight forwarding, third-party logistics solutions and distribution, and general sales agency for airlines. ITL has been in operations since 1999 and has offices in key cities in Vietnam.
Said Dr Wolfgang Baier, SingPost’s Chief Executive Officer (International): “I am excited with this strategic investment in ITL which gives us a foothold into Vietnam and the Indo-China region which are emerging markets with significant logistics and related opportunities.”
Dr Baier added: “SingPost has stepped up its efforts to transform and grow and we have been actively pursuing growth beyond our mail business and expanding into the region. We want to grow our overseas revenue and achieve a more balanced portfolio with bigger contributions from non-mail businesses. Clearly, our key growth drivers will be in the areas of logistics and e-commerce.”
Since embarking on its growth strategy, SingPost has made several major acquisitions in a bid to diversify its revenue base and expand its business beyond Singapore shores. These include acquisitions which resulted in the addition of two wholly-owned subsidiaries: Quantium Solutions, a mail-logistics solutions provider operating out of 10 countries in Asia Pacific and DataPost Pte Ltd a hybrid mail business with presence in 5 countries, according to a SingPost report.
SingPost also made a 27.08% investment in GDEX Express Carrier Berhad, a leading express carrier service provider in Malaysia which offers express delivery and customised logistics services.
In 2009, SingPost took a 30% stake in Postea Inc, a US incorporated technology company specializing in technology solutions for the postal and logistics industry.
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