Singapore Post (SingPost) is looking to purchase a 38 percent stake in Freight Management Holdings (FMH), a fourth-party logistics (4PL) service company based in Victoria, Australia, for US$62 million (A$85.0 million).
Its wholly-owned subsidiary SingPost Logistics Holdings on 16 October entered into a conditional sale and purchase agreement with the existing shareholders of FMH, as well as share subscription agreement with the Australian 4PL for the stake purchase, according to a bourse filing.
Upon completion of the acquisition, SingPost Logistics Holdings intends to set up a new holding company in Australia to hold its equity interest in FMH.
Singapore’s postal service provider said the acquisition is in line with its strategy to become a “leading ecommerce logistics solutions provider” in the Asia Pacific region.
“Utilising its technology, analytics and network, FMH is able to match customers’ freight profile with the optimal carrier, thereby increasing efficiency, utilisation and profitability for both customer and carrier,” SingPost noted in a statement.