Singapore Post (SingPost) has completed the divestment of Freight Management Holdings (FMH) to Pacific Equity Partners for an enterprise value of A$1.02 billion ($867 million), according to a release dated March 27.
The sale follows the approval at the EGM held on March 14 where 99% of shareholders voted in favour of the divestment.
The divestment has resulted in an expected gain of $289.5 million for the group. The estimated gain is preliminary and will be confirmed following the completion of an audit.
SingPost said that it will allocate the sale proceeds towards reducing debt, including the repayment of A$362.1 million in borrowings related to the FMH acquisition.
The board will disclose the amount of the special dividend in compliance with the SGX-ST listing rules.
The divestment of FHM was first announced on Dec 2, 2024. FHM Group is a diversified logistics holding company with divisions across 4PL, warehousing, transportation and technology.
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Just two weeks earlier, SingPost announced that it will invest $30 million to grow its eCommerce Logistics Hub business which will have new sorting facilities that can process three times more small packages.
It will also further consolidate mail with parcel operations under one roof to “achieve greater efficiency”.
Shares in SingPost closed 1 cent higher or 1.739% up at 58.5 cents on March 27.
