Singapore Post Limited (SingPost) has completed the sale of its Australian logistics business, Freight Management Holdings (FMH), providing the company with an estimated S$289.5m (US$216.3m) gain.
The sale, which was valued at A$1.02bn (US$643m), was overwhelmingly approved at SingPost's Extraordinary General Meeting on March 13, where 99% of shareholders voted in favor. The sale completed on March 27.
The sale generated gross proceeds of A$781.5 (US$493.2m) and represents a return of approximately four times the investment SingPost Group has made in FMH in the past four years.
SingPost said will put the sale proceeds toward reducing debt, including the repayment of A$362.1m (US$228.5m) in borrowings related to the FMH acquisition.
FMH has been sold to Pacific Equity Partners, which will support it to build on its strong foundation, accelerate its growth strategy and continue delivering outstanding value and market leading service to its customers, according to Simon Slagter who will remain in his position of CEO of FMH Group following the sale.
Slagter added, "We have built a business defined by innovation and the pursuit of excellence, earning the trust of our customers and partners. Now, with the backing of PEP and our other investors, we are poised for our next phase of growth. Their support will enable us to deepen our investment in proprietary technology, expand our business development function and pursue strategic acquisitions, while we remain committed to unlocking even greater value for our customers and continuing to deliver an outstanding customer experience."
