SINGAPORE POST LIMITED
S08.SI
Singapore Post: Special audit report released
- Singapore Post (SingPost) has announced the release of the special audit report by Drew & Napier LLC and PriceWaterHouseCoopers LLP.
- It was found that SingPost’s “oversight” in declaring that none of its directors had any interest in its acquisition of FS Mackenzie was a result of carelessness, and having sought external legal advice in respect of the incorrect announcement, based its decision not to issue any correction on legal advice.
- It was also pointed out that the group had no prescribed policy, process or procedure for the evaluation and approval of M&A transactions, though there are some broad internal guidelines.
- Meanwhile, Mr. Keith Tay has also relinquished his position as Lead Independent Director of SingPost, and will leave the board by 9 May 2016.
- Looking ahead, the market will likely monitor SingPost’s Chairman and CEO positions, both of which require seasoned individuals who can continue with the group’s transformation strategy.
- As the group will be announcing its full year results soon, we put our Hold rating and S$1.37 fair value estimate under review.
Carmen Lee
OCBC Securities
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http://www.ocbcresearch.com/
2016-05-04
OCBC Securities
SGX Stock
Analyst Report
1.37
Same
1.37
