SingPost shares up 1.6% after it sells freight forwarding business
The move was part of SingPost's ongoing efforts to divest its non-core assets and businesses to recycle capital.
SINGAPORE - Shares of Singapore Post a hit multi-year high in intra-day trading on July 23, the day after the company announced the divestment of its entire freight forwarding business.
The move was part of SingPost's ongoing efforts to divest its non-core assets and businesses to recycle capital. It resulted in an estimated gain of $10.5 million on disposal and release of about $104 million in cash for the company.
At the midday trading break, the counter was up 1.6 per cent, or one cent, to 65 cents, after rising to as high as 65.5 cents earlier. SingPost shares last closed above 65 cents in July 2022.
SingPost announced on July 22 after the market closed that it sold its freight forwarding business conducted through Famous Holdings and Rotterdam Harbour Holding B.V, for approximately $177.9 million.
Famous Holdings and its related businesses were sold to DP World Logistics FZE for about US$97.7 million (S$125 million). It operates in several countries such as Japan, Australia, New Zealand, the United Kingdom, Malaysia and Singapore.
Meanwhile, SingPost's fully-owned subsidiary - SingPost eCommerce Logistics Holdings - sold its entire stake in Rotterdam Harbour Holding for around €35.7 million (S$52.4 million).
SingPost said: 'The divestments further strengthen SingPost's financial position.'
It added that specifically for Rotterdam Harbour Holding, its net asset value as at March 31, 2025, was $30 million, with a net profit before income tax and non-controlling interests of $15.9 million for the same period.
SingPost said in May that its strategic review and restructuring are ongoing.
In June, it put up for sale 10 Housing Board (HDB) shophouses currently occupied by its post office outlets across Singapore, with the aim of leasing them back.
SingPost has 42 post offices, of which it owns 21.
As part of its efforts to restructure, it also sold its Australian logistics business, Freight Management Holdings (FMH). SingPost completed the sale of FMH for A$1.02 billion (S$856 million) in March.
Maybank analyst Jarick Seet said: 'I think the monetisation of assets will continue to be the key for share price performance for SingPost.'
He added that it is also looking to sell its flagship retail-commercial mixed development SingPost Centre at Paya Lebar Central, but that he only expects that to happen in 2026.
SingPost had said in 2024 that it is considering selling SingPost Centre, which it also identified as a non-core asset. The property was valued at $1.1 billion as at September 2023.
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