Have A Question?
Contact us
UK Ireland
T: 44 (0) 1707 37 22 11
T: 353 (0) 16 40 18 18

Singapore Post sells shares in GD Express Carrier 29 January 2016

Reduction in stake will free up capital to invest elsewhere

Singapore Post has entered into a conditional shares sale agreement with Yamato Asia, a wholly-owned subsidiary of Yamato Holdings to sell 137,418,000 ordinary shares of RM0.05 each in GD Express Carrier Bhd (GDEX) for a total consideration of RM239.1 million or approximately S$78.4 million.

As at 28 January 2016, the Company holds 290,735,386 ordinary shares in the issued share capital of GDEX representing approximately 23.3% of the issued and paid up capital of GDEX.

The Group’s strategy is to continue to strengthen its integrated end-to-end eCommerce logistics solutions that include front end web management, warehousing and fulfilment, last mile delivery and international freight forwarding.

The last mile delivery is done by the Group’s own operations, international networks or partners.

The reduction in the stake will free up capital to allow the Group to further invest in its eCommerce logistics operations across the region including its eCommerce logistics warehousing capabilities in Malaysia through its regional logistics arm Quantium Solutions.

The Group will continue growing its networks in all Southeast Asia markets. As the Group has interlinked systems with GDEX, it will continue to be an important last mile delivery partner for SingPost's one stop integrated eCommerce logistics offering.

The Sale Shares represent approximately 10.0% of the enlarged capital of GDEX as at the date of completion of the Placement. Following completion, the shareholding of the Company in GDEX will decrease to 11.2%.

The Group is expected to recognise a net gain from the Proposed Disposal of approximately S$64.0 million after deducting the net asset value of the Sale Shares, professional fees, advisory fees and associated costs.