Wednesday, July 8, 2015

Alibaba raises stake in SingPost to 14.51% with $187.1 million share acquisition

 Singapore Post and Alibaba Group has announced three initiatives to strengthen cooperation and build a leading e-commerce logistics platform to service Asia Pacific and beyond.

Alibaba Group will purchase 107.6 million new ordinary shares amounting to 5% of the existing share capital of SingPost for $187.1 million.

Upon completion, Alibaba’s deemed interest on a fully diluted basis in SingPost will rise from 10.23% to 14.51%.

Alibaba Group acquired its initial stake in SingPost in 2014.

Alibaba's acquisition of additional equity in SingPost is subject to approval from Info-Communications Development Authority of Singapore (IDA) and SingPost’s shareholders

In the second initiative, Alibaba will invest up to $92 million in QSI for a 34% stake in Quantium Solutions International (QSI).

QSI is currently a wholly owned subsidiary of SingPost providing leading end-to-end e-commerce logistics and fulfilment services across the Asia Pacific region.

SingPost will hold the remaining 66% of the equity of QSI.

QSI will reorganise its business and become the joint venture vehicle of SingPost and Alibaba Group.

In addition, QSI will also become a platform for both parties to strengthen their collaboration and realise synergies across their businesses.

In the third initiative, SingPost and Alibaba have also entered into a joint strategic business development framework to further improve efficiency and integration of e-commerce logistics solutions.

SingPost and Alibaba will share their respective knowledge and leverage each other’s strengths to scale across the e-commerce logistics value chain.

A joint steering committee will also be created and drawn from their respective executives.

SingPost closed unchanged at $1.89 yesterday.

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