SingPost to buy stake in Australia fourth-party logistics service firm for A$85m

Published Mon, Oct 19, 2020 · 09:50 PM

Singapore

POSTAL service provider Singapore Post (SingPost) is looking to buy a 38 per cent stake in Freight Management Holdings (FMH), a fourth-party logistics (4PL) service company incorporated in Victoria, Australia for A$85 million (S$84.1 million) in cash.

SingPost's wholly-owned subsidiary SingPost Logistics Holdings on Oct 16 entered into a conditional sale and purchase agreement with existing shareholders of FMH, as well as a share subscription agreement with FMH for the stake purchase, SingPost said in a bourse filing on Monday morning. There is also a call option for SingPost to buy additional FMH shares that could give it a majority stake in the firm.

On completion of the acquisition, SingPost Logistics intends to set up a new holding company in Australia to …