SingPost acquires new subsidiary in Australian freight company
SingPost is set to have a 51% stake in Freight Management Holdings.
Singapore Post Limited (SingPost) announced via a news release that the company has entered into an agreement with Freight Management Holdings Pty. Ltd. (FMH).
The transaction is set to increase the company’s shares from 28% to 51%, making FMH a subsidiary of SingPost.
Upon completion, the agreement would also provide Singpost an opportunity to fully acquire FMH, as well as be immediately accretive to Singpost earnings.
Also included in the agreement is an option for FMH to acquire 100% of SingPost’s shareholding in CouriersPlease, another Australian-based company.
The move is set to speed up Singpost’s initiative to build a second home market in Australia and contribute to its transformation into an eCommerce logistics solutions provider in the APAC region.
Vincent Phang, CEO, Singpost Group, has also spoken about how the move would benefit towards making Australia their second home market.
“The acquisition is consistent with our transformation strategy, enabling us to provide an end-to-end B2B2C logistics solution for customers serving both Business-to-Business (B2B) and Business-to-Consumer (B2C) channels, and provide a seamless logistics service within Australia,” Phang said.