Singapore Post (SingPost) has sold off part of its stake in GD Express (GDEX) for S$78.4 million (US$55.88 million) and will use the proceeds to drive global growth for its eCommerce logistics.
This is a net gain of S$64 million – about five times return on the initial investment.
Yamato Asia, a wholly owned subsidiary of Japanese transportation and forwarding group Yamato Holdings, has bought the 137,418,000 shares.
Proceeds from the SingPost GD Express sale will be reinvested into its eCommerce services and networks in the US, Europe, China and the rest of Asia Pacific, in line with the group’s strategy to continue strengthening its integrated end-to-end eCommerce logistics, including front-end web management, warehousing and fulfilment, last-mile delivery and international freight-forwarding.
SingPost deputy group CEO Mervyn Lim says the group is gearing up “on an accelerated path” to becoming a global leader in end-to-end eCommerce logistics.
“This deal gave us a good return on our investment and also boosted our available resources to drive SingPost’s eCommerce logistics growth as it pivots into the US with the recent investments inTradeGlobal and Jagged Peak.”
With interlinked systems with GDEX, the group will continue to reap business synergies with the added uplift Yamato brings to GDEX.
“Collaborations and partnerships are vital to SingPost as we connect the dots in building a global eCommerce logistics ecosystem,” says Lim. “We continue to work with strategic partners in Malaysia and the rest of Southeast Asia while leveraging the Quantium Solutions commercial network, as well as those of our associated companies, to reinforce the ecosystem we are building.”
SingPost now holds a 11.2 per cent strategic stake in GDEX and retains its board seat.