SingPost to hold EGM for Australia business divestment

The EGM will be on 13 March 2025.

Singapore Post Limited announced that it will hold an Extraordinary General Meeting (EGM) on 13 March 2025 at 3.30 PM to seek shareholders’ approval for the proposed divestment of its Australia business, Freight Management Holdings Pty. Ltd. (FMH) held through SingPost Australia Investments Pty Ltd (SPAI), to Pacific Equity Partners (PEP).

The transaction represents an enterprise value of A$1.02b(approximately $867m). FMH, a leading technology-enabled logistics provider, has grown significantly since SingPost’s initial investment in 2014.

In July 2023, the Board initiated a strategic review of the SingPost Group’s portfolio of businesses, with a view to enhancing shareholder returns and ensuring that the SingPost Group is appropriately valued. In March 2024, the Board outlined its strategic intentions for the businesses and in line with this, initiated a strategic review specifically for the Australian business to formulate optionalities for the Group. Merrill Lynch Markets Australia Pty Limited (“BofA”) was appointed as financial advisor to the Board.

In the course of the strategic review, the SingPost Group received unsolicited interest in the acquisition of FMH, leading to an international competitive bid process conducted by BofA.

The bid process also established an independent valuation benchmark of the Australian business.

After evaluating various options, including full and partial divestments, and organic and inorganic growth strategies, the Board determined that a full divestment was the best option and a first step towards bringing forward and unlocking value for shareholders.

SingPost expects to receive gross proceeds of A$775.9m (approximately $659.5m) in cash. The transaction is expected to generate a gain on disposal of approximately S$289.5 million.

The group aims to use some of the proceeds to repay debts.

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