SingPost shares jump 2.3% to three-year high after sale of freight forwarding business
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The move was part of SingPost’s ongoing efforts to divest its non-core assets and businesses to recycle capital.
PHOTO: ST FILE
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SINGAPORE – Shares of Singapore Post hit a three-year high on July 23, the day after the company announced the divestment of its entire freight forwarding business.
The move was part of SingPost’s ongoing efforts to divest its non-core assets and businesses to recycle capital. It resulted in an estimated gain of $10.5 million on disposal and the release of about $104 million in cash for the company.
The counter closed up 2.3 per cent, or 1.5 cents, to 65.5 cents, with 18.7 million shares changing hands. SingPost shares last hit that level in July 2022.
SingPost announced on July 22 after the market closed that it had sold its freight forwarding business conducted through Famous Holdings and Rotterdam Harbour Holding for approximately $177.9 million.
Famous Holdings and its related businesses were sold to DP World Logistics FZE for about US$97.7 million (S$125 million). It operates in several countries such as Australia, Japan, Malaysia, New Zealand, Singapore and Britain.
Meanwhile, SingPost’s fully owned subsidiary – SingPost eCommerce Logistics Holdings – sold its entire stake in Rotterdam Harbour Holding for around €35.7 million (S$53.5 million).
SingPost said: “The divestments further strengthen SingPost’s financial position.”
It added that specifically for Rotterdam Harbour Holding, its net asset value as at March 31 was $30 million, with a net profit before income tax and non-controlling interests of $15.9 million for the same period.
SingPost said in May that its strategic review and restructuring are ongoing. In June, it put up for sale 10 Housing Board shophouses currently occupied by its post office outlets across Singapore, with the aim of leasing them back. SingPost has 42 post offices, of which it owns 21.
As part of its efforts to restructure, it also sold its Australian logistics business, Freight Management Holdings (FMH). SingPost completed the sale of FMH for A$1.02 billion (S$858 million) in March.
Maybank analyst Jarick Seet said: “The monetisation of assets will continue to be the key for share price performance for SingPost.”
He added it is also looking to sell its flagship retail-commercial mixed development SingPost Centre in Paya Lebar Central, but that he expects that to happen only in 2026.
SingPost had said in 2024 that it is considering selling SingPost Centre, which it also identified as a non-core asset. The property was valued at $1.1 billion as at September 2023.
SingPost has undergone a period of turmoil with the firing of three senior executives, including its chief executive, over the handling of a whistle-blower complaint.
In May, it reported that its underlying net profit for the fiscal year ended March 31 fell 40 per cent to $24.8 million, with the group citing uncertain conditions within the global logistics sector. However, including the one-off gain from the sale of FMH, net profit more than tripled to $245.1 million.
