Singapore Post Limited (SingPost) is increasing its stake in e-commerce provider Quantium Solutions International (QSI) and disposing of its stake in Shenzhen 4PAX Information and Technology (4PX), according to a release dated Apr 16.
SingPost, together with Alibaba Group Holdings, announced the mutual agreement to unwind cross-holdings in 4PX and QSI.
QSI is majority-owned by SingPost, at 66% with Alibaba owning a minority stake of 34%. QSI holds a 17.61% stake in 4PX, a majority-owned subsidiary of Alibaba’s logistics arm, Cainiao.
SingPost will acquire full ownership of QSI, by paying Alibaba $36.89 million for its 34% stake in the company. The $36.89 million is based on a fair value assessment by KPMG as at Sept 30, 2024 which valued the company at $108.5 million.
Meanwhile, Cainiao will acquire QSI’s 17.61% stake in 4PX for $92.75 million.
SingPost anticipates receiving a cash inflow of about $55.86 million from the transaction. This is based on the sum paid by Cainiao for QSI’s stake in 4PX (approximately $92.75), minus the value of QSI shares owned by Alibaba as assessed by KPMG at $36.89 million.
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SingPost says that there is an indication of impairment on the goodwill amounting up to $77.86 million carried on the investment in QSI. Any such impairment will be recognised and disclosed in SingPost’s full year results which is scheduled for release on May 15.
Shares in SingPost closed 0.5 cents higher or 0.943% up at 53.5 cents on Apr 16.
