Singapore Post (SingPost) has entered into a sale and purchase agreement with Jing King Tech Solutions to dispose its 90 per cent stake in DataPost for approximately S$39.3 million (approx. US$29.5 million). This is on the back of another divestment that SingPost made in May of its whole stake in Novation Solutions and DataPost Hong Kong for S$24.4 million.
The company says that it is selling off stakes in the more traditional forms of the postal service business to support the group’s long-term transformation strategy to grow its e-commerce related business in the region. E-commerce logistics is now accounting for close to 30 per cent of the group’s revenue. Among the pipeline of things SingPost has been doing to lay the foundation for this segment, it has in the last week acquired a 30 percent stake in Australian e-commerce firm Hubbed Holdings for some A$4.3 million.
SingPost group CEO Wolfgang Baier said: “Through such strategic investments, we are scaling up to serve the needs of customers as online transactions gain further traction in today’s busy 24/7 lifestyles. This divestment is in line with that strategy which enables us to invest into a sustainable future as letter mail volumes decline.”