Singapore Post to divest Australia business for $505 million (updated)

Singapore Post

01/12/2024 22:51

(Updates with further details of deal, background)
       Dec 2 (Reuters) - Singapore Post  SPOS.SI  said on
Monday it is selling its Australian business, Freight Management
Holdings, to private equity firm Pacific Equity Partners for a
cash consideration of A$775.9 million ($505.4 million).
        The sale will generate an expected gain on disposal of
S$312.1 million ($233.1 million), the company said.
  
    This move follows SingPost's strategic review initiated in
July 2023, and an announcement last week regarding exclusive
talks for the potential sale of its Australian business.
    The board will consider a special dividend payment after
taking into account the repayment of the Australian
dollar-denominated borrowing and future funding needs, the
Alibaba-backed  9988.HK  firm said.
        
  
($1 = 1.5352 Australian dollars)
($1 = 1.3390 Singapore dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru; Editing by Lisa
Shumaker)
 ((Adwitiya.Srivastava@thomsonreuters.com;))