SingPost unwinds joint venture with Alibaba in QSI

Alibaba will exit with a $36.89m payout.

SingPost has announced it will end its joint venture with Alibaba Group in Quantium Solutions International (QSI), its logistics subsidiary.

On 16 April, SingPost’s wholly-owned unit, SingPost Logistics Enterprise (SPLE), signed a deed of undertaking with Alibaba Investment Limited (AIL), under which AIL will exit its 34% stake in QSI.

The exit will be carried out through a selective capital reduction by QSI. AIL’s shares will be cancelled, and it will receive a cash payment of $36.89m, based on a valuation conducted by KPMG. After this, QSI will become a wholly-owned subsidiary of SingPost.

If the capital reduction fails, a fallback plan is in place. SPLE will acquire AIL’s shares through a share transfer agreement already signed as part of the deal.

The SingPost-Alibaba joint venture began in 2015 to grow cross-border e-commerce logistics. AIL received a 34% stake in QSI, with SPLE holding the remaining 66%.

QSI also holds a 17.61% stake in 4PX, a logistics company majority-owned by Alibaba’s Cainiao. Cainiao is expected to acquire QSI’s stake in 4PX, leaving QSI with no remaining interest.

SingPost will recognise an impairment loss of about $77.86m from this transaction. The capital reduction process is expected to complete within 2025, subject to regulatory approvals.

Meanwhile, AIL remains a substantial shareholder in SingPost with an 11.34% stake, but is not a controlling shareholder.