SINGAPORE: Singapore Post Limited (SingPost) has divested its entire freight forwarding business conducted through Famous Holdings Pte Ltd (FHPL) and Rotterdam Harbour Holding B.V. (RHH) for around S$177.9 million, according to the company’s media release on Tuesday (July 22).
The sale was carried out in two parts to separate buyers. The first was sold to DP World Logistics FZE for about US$97.7 million (S$125.5 million), while the other was sold to a consortium that includes some of Famous Holdings’ minority shareholders for around €35.7 million (S$52.4 million).
SingPost said the deal resulted in a gain of about S$10.5 million and freed up S$104 million in cash for the company.
SingPost’s chairman Simon Israel said the move is part of the company’s strategy, announced in March 2024, to divest non-core assets and recycle capital.
“Following a comprehensive international sale process to explore various options for Famous Holdings, the Board concluded that selling the business in two parts would secure the highest possible valuation,” he added.
SingPost said the proceeds will contribute to the company’s cash balance, which shall be determined by the board based on the company’s funding needs.
The sale follows SingPost’s divestment of its Australian logistics business, Freight Management Holdings (FMH), to private equity firm Pacific Equity Partners for about S$845 million in March. /TISG
