SingPost to dilute interest in Chinese logistics company

The postal service company holds a 19.75% stake in the latter through its subsidiary.

Singapore Post Limited (SingPost) has proposed a dilution of its interest in Shenzhen 4PX Information and Technology (4PX).

SingPost, through its subsidiary, Quantium Solutions International Pte. Ltd. (QSI), holds a 19.75% stake in the Chinese logistics company.

In a bourse filing, SingPost said that  4PX has entered into various agreements with its existing shareholder, Zhejiang Cainiao Supply Chain Management Co., Limited (Cainiao).

Under the agreement, SingPost said, "4PX will issue new shares in the capital of 4PX to Cainiao as full and final settlement of all outstanding amounts under an existing RMB400 million loan ($78.6m) extended by Cainiao to 4PX in 2018." SingPost referred to this as "loan capitalisation."

On completion of the loan capitalisation, the number of 4PX shares held by QSI will remain unchanged, and QSI’s equity interest in 4PX will be reduced from 19.75% to 17.61%.

"In connection with the loan capitalisation, QSI, Cainiao and the other shareholders of 4PX have agreed to amend certain terms of the existing shareholders' agreement entered into between them in connection with their investment in 4PX," SingPost explained.

"Such amendments include, inter alia, a revision of the terms of a put option granted by Cainiao to QSI in 2018 for QSI to sell any part of QSI’s equity interest in 4PX exceeding 10% (i.e., approximately 7.6% of QSI’s equity interest in 4PX) to Cainiao and the grant of a new put option by Cainiao to QSI for QSI to sell the remaining 10% of its equity interest in 4PX to Cainiao, post-capitalisation of the Existing Cainiao Shareholder Loan," SingPost added.

QSI may exercise the options together or individually within six months from the completion of the loan capitalisation.