Singapore Post Limited (SingPost) announced that it will hold an Extraordinary General Meeting (EGM) on 13 March 2025 to seek shareholders’ approval for the proposed divestment of its Australian business, Freight Management Holdings Pty. Ltd. (FMH) to Pacific Equity Partners (PEP).
In December 2024, SingPost entered into a sale agreement with PEP for the sale of its Australian business at an enterprise value of $1.02 billion.
“This EGM provides our shareholders with the opportunity to vote on this important transaction, which we believe will unlock substantial value,” said SingPost Chairman of the Board, Simon Israel.
FMH is a leading technology-enabled logistics provider that has grown significantly since SingPost’s initial investment in 2014. It is among the top five logistics players in Australia by revenue according to SingPost.
“The proposed divestment delivers a strong return on our investment in Australia. It crystallises the unrealised value of the business and brings forward unlocking value for shareholders.
“We encourage all shareholders to review the details of the transaction and participate in the EGM.”
The SingPost Group expects to receive gross proceeds of approximately $775.9 million in cash. The transaction is expected to generate a gain on disposal of approximately $345.8m, four times the SingPost Group’s $93.6m equity investment in FMH over the past four years.
FMH Group is a diversified logistics holding company with divisions across 4PL, warehousing, transportation and technology.