Singapore Post - OCBC Investment 2016-05-04: Special audit report released

Singapore Post - OCBC Investment 2016-05-04: Special audit report released 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 | http://www.ocbcresearch.com/ 2016-05-04
OCBC Securities SGX Stock Analyst Report UNDER REVIEW Maintain HOLD 1.37 Same 1.37


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