Last close As at 05/08/2026
SGD0.34
▲ −0.01 (−1.47%)
Market capitalisation
SGD766m
Research: Industrials
Following Singapore Post’s resilient H1 results in November, the company has now announced that it has agreed to sell its Australian logistics business for an enterprise value of c A$1bn to a private equity investor. The disposal is likely to result in the reporting of a gain on disposal of over S$300m. The proceeds are likely to be used to pay down debt and to potentially pay a special dividend to shareholders.
Singapore Post |
Australian logistics to be divested for c A$1bn |
Disposal |
Industrials |
3 December 2024 |
Share price performance
Business description
Analyst
Singapore Post is a research client of Edison Investment Research Limited |
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Following Singapore Post’s resilient H1 results in November, the company has now announced that it has agreed to sell its Australian logistics business for an enterprise value of c A$1bn to a private equity investor. The disposal is likely to result in the reporting of a gain on disposal of over S$300m. The proceeds are likely to be used to pay down debt and to potentially pay a special dividend to shareholders.
Year end |
Revenue (S$m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/23 |
1,872.3 |
75.3 |
0.6 |
0.6 |
93.5 |
1.0 |
03/24 |
1,686.7 |
70.5 |
3.0 |
0.7 |
19.4 |
1.3 |
03/25e |
2,124.9 |
106.1 |
2.7 |
1.3 |
21.6 |
2.2 |
03/26e |
2,198.5 |
125.7 |
3.3 |
1.5 |
17.6 |
2.6 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Singapore Post announced on 2 December that it has agreed to sell its entire Australian logistics operation, Freight Management Holdings Pty Ltd, to private equity group Pacific Equity Partners for a total enterprise value of A$1.02bn (c S$897.6m). This translates into A$775.9m (c S$682.8m) in cash and generates an expected profit on disposal of S$312.1m, subject to potential adjustments at the time of completion, which is expected to be the end of March.
It intends to repay A$362.1m (c S$320.8m) of Australian dollar denominated debt (as at the end of September 2024), which was taken out to finance the original purchase of FMH from the net cash proceeds of A$775.9m. This implies ‘net’ proceeds of A$413.8m or c S$362.0m. At this point SingPost will no longer have any Australian dollar debt outstanding.
SingPost is considering the declaration of a special dividend but will also consider paying down some of the company’s remaining Singapore dollar debt and the future funding needs of the group prior to any decision and subsequent announcement.
The proposed sale follows a strategic review, commenced in July 2023, which was designed to enhance shareholder value and to also ensure that the group was appropriately valued. In March 2024, the board outlined its strategic intentions for the group, which included a review of the Australian operations and its future options. Merrill Lynch Markets Australia was appointed as financial advisor to the board for this purpose.
During the review, SingPost received unsolicited interest in the acquisition of FMH and a competitive bid process ensued. After full consideration of numerous options and outcomes, the board decided that the disposal described above was thought to be the best option to unlock shareholder value.
There are a number of regulatory approvals required, in both Singapore and Australia, before the deal can be finalised.
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