Singapore Post has spent €0.7 million to raise its stake in Malaysian company GD Express (GDEX) to27.41 per cent as part of its ongoing expansion in the Asian express market.
In March last year, SingPost spent RM 45.5 million (€10.7 million) to buy 56.8 million GDEXshares on the Malaysian stock exchange, thus increasing its holding from the previous 4.98 per centto a 27.08 per cent stake.
In the latest transaction, SingPost has acquired an additional two million shares for RM 2.8million (€0.7 million) in cash. SingPost has purchased each share for RM 1.40 (€0.35) on theMalaysian stock exchange which represents a discount of around 1.4 per cent over the weightedaverage price of RM 1.42 negotiated on a willing-buyer, willing-seller basis.
The acquisition is not expected to have a material effect on the net tangible assets orearnings per share of the Group for the financial year ending 31 March 2013, SingPost stressed.
Founded in 1997, GDEX is an express carrier service provider in Malaysia which offers expressdelivery and customised logistics services. It is one of the country’s leading domestic playerswith a fleet of over 280 vehicles and a network of 96 stations comprising 53 branches and 41throughout East and West Malaysia. It has an office in Singapore for cross-border business, andoffers international deliveries through alliances with international courier companies. The groupcurrently employs more than 1,300 staff.
This latest move adds to other recent acquisitions by SingPost in the Asia Pacific regionwith the aim to grow on the international level and generate more revenues in the logistics andother non-postal businesses. To speed up the company’s regionalisation and diversification efforts,the company appointed Wolfgang Baier as Chief Executive Officer for its international activities inthe beginning of 2011 and later named him as group CEO.
Under his lead, SingPost acquired a 30 per cent stake in Indo Trans Logistics in June lastyear for US$10.8 million to gain a foothold in Vietnam and the Indo-China region. Incorporated inVietnam, ITL offers integrated logistics solutions with businesses in air and sea freightforwarding, third-party logistics solutions and distribution as well as a general sales agency forairlines.
A month later, SingPost stepped up its logistics expansion with the acquisition of a 20 percent stake in Shenzhen 4PX Express for RMB 60 million (€6.4 million) to expand its presence inChina’s booming e-commerce market. 4PX, based in Shenzhen, provides international express deliveryservices, international freight forwarding, as well as logistics services such as warehousemanagement, inventory management, order fulfilment and processing.
