Singapore Post Limited (SingPost) announced the successful divestment of its entire freight forwarding business, conducted through Famous Holdings Pte Ltd (FHPL) and Rotterdam Harbour Holding B.V. (RHH), for a total consideration of approximately S177.9million(US139.2 million).
The strategic divestment, a key step in SingPost’s ongoing transformation plan to simplify its business and recycle capital, is expected to result in an estimated realized gain on disposal of S10.5millionandwillunlockapproximatelyS104.0 million in cash for the company.
The sale of the freight forwarding business was executed in two parts:
Famous Holdings Pte Ltd (FHPL) and its related businesses were acquired by global supply chain solutions provider DP World Logistics FZE for approximately US97.7million(S125.5 million).
Rotterdam Harbour Holding B.V. (RHH) was acquired by a consortium, which includes certain minority shareholders, for approximately €35.7 million (S$52.4 million). The consortium comprises ETC Etcetera Beheer B.V., Dejox Beheer B.V., and van Munster & de Jong Investeringen B.V.
This latest transaction follows the successful divestment of SingPost’s Australian logistics business, Freight Management Holdings (FMH), earlier this year for an enterprise value of A$1.02 billion (approximately S858 million, which included Couriers). SingPost continues to review its non-core assets, including its flagship commercial development, SingPost Centre.
“The completion of the sale of our freight forwarding business, along with the earlier divestment of FMH, significantly sharpens SingPost’s strategic focus,” said a SingPost Spokesperson. “This marks a major milestone in our plan to streamline our portfolio, generate substantial cash proceeds, and concentrate our resources on transforming our core business: domestic and international postal services, and growing e-commerce logistics within Asia-Pacific.”
The proceeds from these divestments will substantially strengthen SingPost’s cash position, allowing the company to reduce debt and fund strategic investments aimed at long-term sustainable growth for its core operations, specifically in the e-commerce logistics sector.
Summary of Key Financial Outcomes (Freight Forwarding Divestment):
Detail Amount
Total Sale Consideration Approx. S$177.9 million
Estimated Realized Gain on Disposal Approx. S$10.5 million
Cash Unlocked Approx. S$104.0 million
