If you haven't already know, Singpost announced a trading halt yesterday in the afternoon, pertaining to Alibaba's investment in it. The news can be found here.Instead of boring you with the nitty-gritty details; let's take a look at the main highlights:
Alibaba Investment Limited will invest S$312.5 million to purchase 30 million existing ordinary shares held in treasury by SingPost and 190.096 million new ordinary shares and take a 10.35% stake in SingPost upon completion.
Both parties are forming a joint venture (JV) to leverage on each other's strengths and distribution networks/technology discuss.
Currently, SingPost’s e-commerce and related businesses account for about 26% of its total revenue. The CEO has said that he understands that their core domestic business [mailing biz] continues to be under pressure from rapidly declining domestic traditional mail volumes.
Thus, he is looking at driving growth through Singpost's regional e-commerce logistics ...
