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/
