Write an article about
[SINGAPORE] Singapore Post (SingPost) has divested its entire freight forwarding business, Famous Holdings, for about S$177.9 million.
The sale resulted in an estimated realised gain on disposal of S$10.5 million and about S$104 million in cash for the company, said the national postal service provider on Tuesday (Jul 22).
It noted that the sale was carried out in two parts. Supply chain solutions provider DP World Logistics FZE acquired the entire issued share capital of Famous Holdings, a unit of SingPost Logistics Investments, for about US$97.7 million.
Separately, a consortium comprising some of Famous Holdings’ minority shareholders acquired Rotterdam Harbour Holding for about 35.7 million euros (S$52.4 million). Rotterdam Harbour Holding is a unit of SingPost eCommerce Logistics Holdings.
As at Mar 31, the net asset value of Famous Holdings, including Rotterdam Harbour Holding, stood at about S$176 million. Excluding Rotterdam Harbour Holding, the net asset value was about S$146 million. Rotterdam Harbour Holding’s net asset value was S$30 million as at Mar 31.
Simon Israel, SingPost’s chairman, said: “Following a comprehensive international sale process to explore various options for Famous Holdings, the board concluded that selling the business in two parts would secure the highest possible valuation.”
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The group said in a bourse filing: “The disposals are considered to be beneficial to shareholders to monetise non-core assets and businesses to strengthen its financial position and improve shareholder value.”
Assuming that both deals were completed on Mar 31, SingPost’s earnings per share would have risen to S$0.111 from S$0.109.
The sale of Famous Holdings comes after a strategic review that was announced last March.
SEE ALSO
During the review, SingPost identified achieving scale in the Australia market as one of its five strategic thrusts it plans to undertake in the next three years. This includes exploring near-term partnerships that can contribute to growth, providing equity to deleverage acquisition debt and creating an independent valuation benchmark.
In its Q3 business update, SingPost said its revenue was lower, while cost of operating the local post office network had risen. It had also laid off 45 employees in a bid to restructure the business.
Given those circumstances, the group said it will carry on with a review of its international logistics business, as well as continue to dispose of non-core assets. The SingPost Centre in Paya Lebar and freight forwarding business Famous Holdings were identified as part of this non-core portfolio.
The disposal of Famous Holdings also comes just four months after the A$1 billion (about S$845 million) sale of its Australian logistics business Freight Management Holdings to private equity investment firm Pacific Equity Partners.
That divestment, which received overwhelming support from shareholders, generated gross proceeds of about A$781.5 million and an estimated gain of S$289.5 million.
Shares of SingPost ended Tuesday 0.8 per cent or S$0.005 lower at S$0.64.
in html format .Organize the content with appropriate headings and subheadings ( h2, h3, h4, h5, h6). Include conclusion section and FAQs section with Proper questions and answers at the end. do not include the title. it must return only article i dont want any extra information or introductory text with article e.g: ” Here is rewritten article:” or “Here is the rewritten content:”
