SingPost completes sale of Freight Management Holdings for $867m

Special dividend to be disclosed “in due course.”

Singapore Post (SingPost) has completed divestment of its Australian logistics business Freight Management Holdings (FMH) to Pacific Equity Partners (PEP) for A$1.02b or approximately S$867m.

The divestment generated gross proceeds of A$781.5m (S$664.2m), and SingPost expects to gain S$289.5m for the group.

SingPost said that it would allocate the sale proceeds towards reducing debt, including the repayment of A$362.1m (S$307.8m) in borrowings related to the FMH acquisition.

SingPost’s board will also disclose the amount of a special dividend in due course.

SingPost had earlier obtained “overwhelming approval” or 99% of shareholders’ vote in favor of the sale during its extraordinary general meeting on 13 March 2025.

In an announcement, SingPost described the sale as necessitating a “strategy reset” for the group, with earnings in the interim dependent on its Singapore postal and e-commerce logistics business, its international e-commerce logistics business, and two major non-core assets SingPost Centre and Famous Holdings.