OCBC Investment Research 2015-07-08: Singapore Post - Alibaba ups investment in SingPost

Singapore Post: Alibaba ups investment in SingPost 

  • Singapore Post (SingPost) announced that Alibaba Group Holding will invest up to ~S$92m in Quantium Solutions International (QSI) for a 34% stake, with SingPost holding the remaining 66%. 
  • QSI is currently a wholly owned subsidiary of SingPost providing leading end-to-end ecommerce logistics and fulfilment services across the Asia Pacific region, but it will later become a JV between both parties. 
  • At the same time, Alibaba will purchase another 5% stake of SingPost for S$187.1m such that its deemed interest on a fully diluted basis in SingPost will rise from 10.23% to 14.51%. 
  • This is subject to IDA and SingPost’s shareholder approvals. 
  • Finally, both parties have also entered into a joint strategic business development framework to further improve efficiency and integration of e-commerce logistics solutions. 
  • Maintain BUY with S$2.19 fair value estimate on SingPost. 


(Carmen Lee)

Source: http://www.ocbcresearch.com/




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