SingPost *Official* (SGX: S08)

Shion

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SingPost to complete strategic review of business units by next March​


https://www.straitstimes.com/busine...ategic-review-of-business-units-by-next-march
SINGAPORE - Singapore Post (SingPost) aims to complete a strategic review of the group’s business lines by March next year and has retained BofA Securities as its exclusive financial advisor to oversee the process.

In response to queries from The Straits Times, a SingPost spokesman said on Tuesday that the company intends to complete the strategic review within the current financial year ending March 31, 2024.

SingPost revealed that it is embarking on a strategic review of its operations when it announced its results for the previous financial year in May.
At that time, the group’s post and parcel unit had reported its first-ever annual loss in the financial year ending March 31.

There had been a sharp drop in domestic letter volumes since the pandemic and the downward trend was expected to continue well into the future, SingPost said.

On the flip side, the group’s Australian and international divisions had grown significantly to account for 86 per cent of SingPost’s overall revenue.

This shift in the revenue mix had prompted SingPost’s management to review its business segments to see if they still fit into the group’s goal of becoming a global logistics player, and not just a Singapore-only postal services company.

News of the re-evaluation had resulted in some speculation over the future of SingPost’s ailing mail delivery business in the wake of the review.

On July 5, however, the government said that it would consider allowing SingPost to raise postage rates to “better reflect the cost of the letter mail business”.

The group said subsequently that it would work with the Infocomm Media Development Authority (IMDA) to review its costs and operating model, as well as work “towards a framework for long-term sustainability and commercial viability of the domestic postal service”.

Since then, SingPost shares have climbed almost 7.7 per cent to close at 49 cents on Tuesday, their highest levels in nearly eight weeks.

Meanwhile, the national postal service provider said in a statement on Monday that the review would focus on transitioning the group into a logistics business in due course.

As part of this process, it would identify potential businesses or assets that are non-core or those that are not expected to earn a return above their cost of capital.

This could lead to possible divestments and capital would be recycled to support further investments in the logistics operations, the group said.

The review would also look at how the group could optimise its balance sheet, enhance shareholder returns, and ensure that the group’s structure would allow its underlying businesses to be “appropriately valued”.
 

Shingoz

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SingPost to complete strategic review of business units by next March​


https://www.straitstimes.com/busine...ategic-review-of-business-units-by-next-march
SINGAPORE - Singapore Post (SingPost) aims to complete a strategic review of the group’s business lines by March next year and has retained BofA Securities as its exclusive financial advisor to oversee the process.

In response to queries from The Straits Times, a SingPost spokesman said on Tuesday that the company intends to complete the strategic review within the current financial year ending March 31, 2024.

SingPost revealed that it is embarking on a strategic review of its operations when it announced its results for the previous financial year in May.
At that time, the group’s post and parcel unit had reported its first-ever annual loss in the financial year ending March 31.

There had been a sharp drop in domestic letter volumes since the pandemic and the downward trend was expected to continue well into the future, SingPost said.

On the flip side, the group’s Australian and international divisions had grown significantly to account for 86 per cent of SingPost’s overall revenue.

This shift in the revenue mix had prompted SingPost’s management to review its business segments to see if they still fit into the group’s goal of becoming a global logistics player, and not just a Singapore-only postal services company.

News of the re-evaluation had resulted in some speculation over the future of SingPost’s ailing mail delivery business in the wake of the review.

On July 5, however, the government said that it would consider allowing SingPost to raise postage rates to “better reflect the cost of the letter mail business”.

The group said subsequently that it would work with the Infocomm Media Development Authority (IMDA) to review its costs and operating model, as well as work “towards a framework for long-term sustainability and commercial viability of the domestic postal service”.

Since then, SingPost shares have climbed almost 7.7 per cent to close at 49 cents on Tuesday, their highest levels in nearly eight weeks.

Meanwhile, the national postal service provider said in a statement on Monday that the review would focus on transitioning the group into a logistics business in due course.

As part of this process, it would identify potential businesses or assets that are non-core or those that are not expected to earn a return above their cost of capital.

This could lead to possible divestments and capital would be recycled to support further investments in the logistics operations, the group said.

The review would also look at how the group could optimise its balance sheet, enhance shareholder returns, and ensure that the group’s structure would allow its underlying businesses to be “appropriately valued”.
It's unimaginable that singpost will sell or even split the local postal business. They might need a new name if they do! Singapore logistics? Haha


I supposed the recommendation will be to adjust the price of postal to match cost.

Sell sell other distractive investment and focus on the strong adjacent businesses.
 

a1v1n_

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SingPost is introducing a substantial rate increment for the first time in almost a decade. From Oct 9, standard regular mail rates will be increased by S$0.20 or 65 per cent to S$0.51 from the current S$0.31. The last significant rate increment was in 2014, when postage increased to S$0.30 from S$0.22. The postal service provider on Tuesday (Sep 19) said its latest rate increment reflects the escalating costs of maintaining the postal service.


Read HWZ Forum Rules!
 

Shion

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SingPost brings total stake in Freight Management Holdings to 98% with additional 10% acquisition for A$62.8 mil​


https://www.theedgesingapore.com/ne...nt-holdings-98-additional-10-acquisition-a628

Singapore Post (SingPost) has acquired an additional 10% interest in Australian services provider Freight Management Holdings (FMH) for A$62.8 million ($55.3 million).

This brings SingPost’s total stake in FMH to 98%, up from 88% previously. SingPost first acquired a 28% stake in FMH in December 2020 before upping its stake to 51% in November 2021. The company’s 37% acquisition in January took its stake to 88%.

The latest 10% acquisition of shares, through wholly-owned subsidiary SingPost Australia Investments Pty Ltd, came from FMH non-management shareholders and Degenhardt shareholders.

Separately, FMH management shareholders have accepted an offer to sell all existing FMH shares to SingPost. The transaction is pending completion.

Upon completion of the acquisition from the FMH management shareholders, SingPost will hold 100% equity interest in FMH.

Shares in SingPost closed 0.5 cents or 1.1% up at 46 cents on Nov 28.
 

Shion

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SingPost acquires remaining 2% interest in Freight Management Holdings for A$13.3 mil​


https://www.theedgesingapore.com/ne...interest-freight-management-holdings-a133-mil

Singapore Post (SingPost) S08 0.00% has acquired the final 2% interest in Australian services provider Freight Management Holdings (FMH) for A$13.3 million ($11.7 million).

Following the acquisition from FMH management shareholders, SingPost, through its wholly-owned subsidiary SingPost Australia Investments (SPAI), holds 100% of the issued share capital of FMH.

SingPost first acquired a 28% stake in FMH in December 2020 before upping its stake to 51% in November 2021. The company acquired an additional 37% stake in January and a further 10% interest on Nov 28, bringing its total stake in FMH to 98%.

Shares in SingPost closed unchanged at 45 cents on Dec 6.
 
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