- 19 October 2020
- Transport / Logistics Services
Singapore Post (SingPost) has announced it is planning to buy a 38% stake in Australian fourth-party logistics (4PL) service company Freight Management Holdings (FMH) for A$85 million (£46.24 million) in cash.
The conditional sale and purchase agreement on October 16 was entered into by wholly owned subsidiary SingPost Logistics Holdings with the existing shareholders of FMH.
Once the deal is complete, SingPost has signalled it intends to set up a new holding company in Australia in order to hold its equity interest in FMH.
The company explained the investment in the filing: “Together with the SingPost Group’s other businesses in Australia – CouriersPlease as well as one of SingPost’s other Australian subsidiaries, Quantium Solutions Australia, an eCommerce logistics solutions provider – the SingPost Group is able to derive synergistic benefits, grow volumes and build scale.
“The combination enables the SingPost Group to provide an end-to-end B2B2C logistics solution for customers serving both Business-to-Business (B2B) and Business-to-Consumer (B2C) channels, and provide a seamless logistics service within Australia and the wider Asia-Pacific region.
“This provides a strong platform for the SingPost Group to drive revenue and earnings growth, as well as further its strategic ambition in Australia over the long term.”