Singapore – SingPost, a logistics provider in Asia-Pacific, has recently announced a mutual agreement with Alibaba to unwind respective minority cross-shareholdings, following previously agreed terms.
As cited in the agreement, both companies will proceed to exercise options to exit their minority cross-shareholdings in Shenzhen 4PX and Quantium Solutions International. The agreement is dated 20 January 2023.
“The execution of this agreement enables the efficient unwinding of our cross-holdings, allowing SingPost to simplify our investment portfolios and pursue strategic objectives,” explained Simon Israel, chairman of the board at SingPost.
SingPost holds a 66% majority stake in QSI, while Alibaba owns the remaining 34%. QSI, in turn, owns 17.61% of 4PX, a subsidiary primarily owned by Alibaba’s logistics unit, Cainiao.
The previously agreed terms noted that under a deed of undertaking, SingPost will take full ownership of QSI, while Cainiao, Alibaba’s logistics arm, will raise its stake in 4PX. More specifically, the two parties said that Cainiao will acquire QSI’s 17.61% stake in 4PX for approximately S$92.75m.
Part of the process includes seeing Alibaba’s shares in QSI being cancelled through a capital reduction. SingPost, on the other hand, will pay Alibaba S$36.89m for their 34% stake in QSI.
The payment amount is based on a fair value assessment by KPMG as of 30 September 2024, which valued QSI at approximately S$108.5 million.
Following the transaction, SingPost further estimates approximately S$55.86 million cash inflow from the deal. Meanwhile, the valuation suggests a possible impairment of up to S$77.86m in goodwill from the QSI investment, to be reflected in its full-year financials set for release on 15 May 2025.
