Singapore Post

Singapore Post: Signed strategic collaboration with Alibaba Investment. Sing Post will issue an aggregate 220.1m shares at $1.42/share, comprising 190.1m new shares and 30m existing treasury shares. This represents 10.35% of enlarged share capital. In conjunction, Sing Post entered into a MOU to create a defining platform for international eCommerce logistics, where Sing Post will negotiate exclusively with Alibaba to enter into a JV in the business of international eCommerce logistics. The vote of confidence from Alibaba signals a move towards considerable strategic advantages, such as the creation of new relationships and opportunities for cooperation, expected to increase the Company’s regional growth and development pace and accelerate the Company’s transformation and pursuit of additional opportunities. Sing Post believes that this strategic collaboration will enable it to leverage on eCommerce logistics as a strengthened revenue stream, even as its core business continues to be eroded by declining traditional domestic mail volumes. In addition, fund raising will assist the group’s funding requirement to drive growth in its eCommerce offerings in the region, as it scales up its eCommerce logistics infrastructure to meet greater volumes in this area.