SingPost cautions ‘no certainty’ over sale of assets
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Shares of SingPost were trading up 0.5 cent, or 0.9 per cent, at 56 cents as at 10.02am on Jan 6.
ST PHOTO: KUA CHEE SIONG
Chong Xin Wei
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SINGAPORE - While Singapore Post has been in discussions with various parties for the sale of its assets, there is no certainty that any transaction will arise, the company said on Jan 6 before the stock market opened.
“In particular, no definitive or binding agreement in relation to the sale of Famous Holdings has been entered into at this time,” said SingPost, clarifying a media report published on Jan 3.
In the report, Maybank Securities had said that the national postal service provider could offer a potentially “significant” special dividend
The research house was referring to SingPost’s proposed divestment of its Australian logistics business Freight Management Holdings and its potential sale of freight forwarding business Famous Holdings.
Maybank said the sale of Famous Holdings should conclude by the end of January 2025, which should raise between $80 million and $100 million in proceeds.
SingPost in its Jan 6 statement reiterated that the proposed sale of Freight Management Holdings is subject to shareholders’ approval at an extraordinary general meeting that will be held in February.
The group also reiterated its Dec 29 announcement where following the termination of the employment of three senior executives, “there may be adjustments in the phasing and timing of further disposals”.
“The board will review and restate its strategy in due course,” said the group.
It added: “All major divestments will be subject to shareholders’ approval if required under the relevant laws and regulations.”
In December, SingPost fired three senior executives
The executives are former group chief executive officer Vincent Phang, group chief financial officer Vincent Yik, and CEO of the company’s international business unit Li Yu.
Mr Phang was also asked to resign as a director of SingPost and all its related companies, said SingPost on Dec 22.
All three executives are contesting the termination of their employment.
The whistle-blower’s report was related to SingPost’s non-regulated international e-commerce logistics parcels business.
Investigations by SingPost into the report found that three managers in the international business unit had “committed serious breaches of the company’s code of conduct” for deliveries for “one of its largest” customers.
They had performed or approved manual updates of the “delivery failure” status code for parcels SingPost had agreed to deliver – without supporting documents and even though no delivery attempt had been made.
SingPost shares closed down 0.5 cent, or 0.9 per cent, at 55 cents on Jan 6. THE BUSINESS TIMES
