Channel NewsAsia
Updated: 05/28/2014 16:29 | By Channel NewsAsia

Alibaba invests S$312.5m in Singapore Post

Alibaba invests S$312.5m in Singapore Post

Alibaba invests S$312.5m in Singapore Post

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.

- CNA/kk

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