A minority holding in Singapore Post could be sold to a strategic investor next year as part ofcontinuing privatisation in the south-east Asian state.
SingTel, the Singapore telecoms group, sold a five per cent holding in SingPost to financialinvestors for S$105 million on December 9, reducing its holding from 30.85 per cent to 25.87 percent. Other Singaporean-based state-owned companies sold small shareholdings in the stock exchangelisted post office on the same day.
As a result, Temasek Holdings, the Singaporean state holdings group which also includes SingTel,reduced its overall holding in SingPost from 31 per cent to 26.3 per cent. This means about 73.7per cent of SingPost shares are now publicly owned.
Looking ahead, SingTel, which is currently divesting non-core businesses, announced: “It isSingTel’s intention to sell its remaining 25.87 per cent interest in SingPost through a strategicsale.” This would first be after a ‘lock-up’ period of six months, however, it noted.
SingPost, which provides mail and parcel delivery within, to and from Singapore as well as localfreight and logistics services, was listed on the Singapore stock exchange in May 2003. In January2005, Lau Boon Tuan was appointed Group CEP of SingPost to head the company’s strategy of growingits direct mail and goods distribution businesses, including regional logistics activities.
In the fiscal year ending March 31, 2005, SingPost increased its net profit six per cent toS$110.5 million on operating revenues up 2.1 per cent to S$375.8 million. It has an exclusive maillicence for Singapore until 2007.
