Singapore Post has completed the divestment of its Australian logistics business, Freight Management Holdings (FMH), for A$1 billion (S$845 million).
The sale, first announced late last year, comes on the back of job losses as the post contends with a drop in operating profits and the fallout from a whistleblower scandal that saw three of its top executives forced from their jobs.
SingPost sold FMH to Australia-headquartered private equity investment firm Pacific Equity Partners, with the divestment generating gross proceeds of about A$781.5 million – and an estimated gain of S$289.5 million.
Sale will help reduce debt
According to SingPost, sale proceeds will be used to reduce debt, including the repayment of a A$362.1 million loan taken for the financing of the FMH acquisition. SingPost called the sale “a strategy reset” for the group, which came after a strategic review of its portfolio of businesses in 2023.
During the strategic review, SingPost received unsolicited interest in the acquisition of FMH, leading to an international competitive bid process conducted by Merrill Lynch. After evaluating various options, including full and partial divestments, organic and inorganic growth strategies, the board decided that a full divestment was the best option.
‘Exciting milestone’
