SingPost has announced it has entered into a sale and purchase agreement to divest a 90% stake in DataPost to Jing King Tech Solutions for approximately S$39.3m (US$29.4). Last month, the post divested its 100% stake in Novation Solutions and DataPost (HK) for S$24.4m (US$18.2m).
DataPost, together with Novation and DataPost (HK) in Hong Kong, is engaged in full-service security printing, document management and transactional mail printing services.
These divestments support SingPost’s strategy of focusing on growing its e-commerce related businesses in the region. The proceeds will go toward building its capability as a regional leader in e-commerce logistics, a business that now constitutes about 28% of the group revenue.
Dr Wolfgang Baier, group CEO at SingPost, said, “Over the past financial year, we have invested S$224m (US$167.8m) to strengthen our e-commerce logistics capabilities and network in the region through strategic acquisitions, partnerships and joint ventures.
“Through such strategic investments, we are scaling up to serve the needs of customers as online transactions gain further traction in today’s busy 24/7 lifestyles. This divestment is in line with that strategy which enables us to invest into a sustainable future as letter mail volumes decline.”
Among the recent initiatives SingPost is undertaking in this direction is the construction of the S$182m (US$136m) Regional eCommerce Logistics Hub in Singapore, expanding its mail operations’ infrastructure through technology enhancements and new integrated sorting system, and increasing its network of POPStations, which now exceeds 100 island-wide.
Mr Woo Keng Leong, senior executive vice president and head of postal services at SingPost, commented, “As part of good governance, we regularly review our portfolio of businesses and investments to maximize long-term shareholder value. This divestment will enable us to focus on growing our e-commerce logistics business, and entrench our position as a market leader in the region.”
He added that trusted communications and e-commerce logistics remain SingPost’s two strategic focus areas: “We remain committed to our service obligations in Singapore as the national postal service provider, and have been investing significantly into postal infrastructure over the last few years to enhance our service quality and efficiency. Through our remaining stake in DataPost, we will continue to work with our partner to innovate and deliver quality service to our customers.”
June 23, 2015