SingPost announced that it has entered into a sale and purchase agreement to divest a 90% stake in DataPost Pte Ltd to Jing King Tech Solutions Ptd Ltd for S$39.3m. The deal follows SingPost’s divestment of its 100% stake in Novation Solutions Limited and DataPost (HK) Pte Limited for S$24.4m. The three divested companies were all engaged in full service security printing, document management and transactional mail printing services.
The divestments form part of SingPost’s strategy to focus on growing its e-commerce related businesses. The proceeds will go towards building its capability as a regional e-commerce logistics player. The company states that e-commerce now constitutes about 28% its revenue.
Wolfgang Baier, CEO of SingPostsaid, “Over the past financial year, we have invested S$224m to strengthen our e-commerce logistics capabilities and network in the region through strategic acquisitions, partnerships and joint ventures. Through such strategic investments, we are scaling up to serve the needs of customers as online transactions gain further traction in today’s busy 24/7 lifestyles. This divestment is in line with that strategy which enables us to invest into a sustainable future as letter mail volumes decline.”
To further accommodate the changing nature of its business SingPost is constructing a S$182m regional e-commerce logistics hub in Singapore. It is also developing its mail operations’ infrastructure through technology enhancements and a new integrated sorting system. In addition the company is increasing its network of POPStations, which now exceed 100 throughout Singapore.
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