Alibaba Group Holding has ceased to be a substantial shareholder of Singapore Post (SingPost) after an off-market transaction where the China ecommerce giant is cutting its investment at a loss.
According to a bourse filing, Alibaba sold 151.3 million shares in the postal company for $64.4 million or 42.6 cents apiece.
Alibaba first invested in SingPost more than a decade ago in 2014. Back then, it paid $1.42 each for a stake of just over 10%.
Following the sale, Alibaba’s stake in SingPost has been pared down to 4.61% from 11.33% previously.
This means Alibaba and SingPost are both no longer obliged to make further disclosures if and when the former sells more.
Thus far, it is not clear who is on the other side of the trade.
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Based on SingPost’s latest annual report for the FY2024/FY2025, Alibaba is the group’s second-largest shareholder with 255.15 million shares, while Singapore Telecommunications is the largest shareholder with 494 million shares.
The shares likely changed hands on Sept 5, conducted via two trades.
A SingPost spokesperson told The Edge Singapore that portfolio management decisions by its shareholders are “independent” and are not reflective of the group’s business and future plans.
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"The company remains focused on executing its transformation agenda and delivering value to all stakeholders,” the spokesperson added.
Shares in SingPost closed 0.5 cents lower or 1.1% down at 45 cents. Year-to-date, the group’s shares have fallen by 16.67% from around 54 cents at the start of the year.
