- POSTED: 28 May 2014 16:29
The deal will help the national postal service provider move away from an eroded core business and move to e-commerce logistics as a strengthened revenue stream.
SINGAPORE: Singapore Post (SingPost) and Alibaba Group Holdings have announced on Wednesday (May 27) that the Chinese Internet company will invest S$312.5 million for a 10.35 per cent stake in the national postal service provider.
In a statement to the Singapore Exchange today, SingPost said it has agreed to a deal with Alibaba Investment Limited, a wholly-owned subsidiary of Alibaba Group, for the purchase of 30 million existing shares and 190.1 million new ordinary shares as part of the investment.
SingPost stated: "The addition of Alibaba Group as a substantial shareholder will provide the SingPost Group with considerable strategic advantages, such as the creation of new relationships and opportunities for strategic cooperation with Alibaba Group."
Both parties also signed a Memorandum of Understanding that will allow them to explore the possibility of a joint venture in the area of international e-commerce logistics.
"SingPost believes that this strategic collaboration will enable it to leverage on e-commerce logistics as a strengthened revenue stream, even as its core business continues to be eroded by declining traditional domestic mail volumes," it said.