This is part of the national postal service provider’s plans to achieve scale in the country
SINGAPORE Post (SingPost) announced on Friday (Jun 21) its appointment of Merrill Lynch Markets Australia as a financial adviser to its board.
SingPost said that the adviser will work with its board to “formulate optionalities for the group’s Australia business specifically”.
The group plans to achieve scale in Australia by exploring near-term partnerships that can contribute to growth.
It said that this will provide equity to deleverage its acquisition debt, and establish an independent valuation benchmark. The group also intends to continue seeking opportunities for mergers and acquisitions and future liquidity options.
The national postal service provider had reported on Mar 19 its completion of a strategic review of its portfolio, and identified five strategic thrusts that it plans to undertake in the next three years.
A subsidiary of SingPost previously acquired Border Express, a pallet and parcel distribution operator in Australia, for a maximum purchase consideration of A$210 million (S$183 million).
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With the acquisition, the group plans to strengthen its position as one of the top five logistics companies in Australia, by revenue size.
Its other strategic thrusts include reorganising the group into three business units of Singapore, Australia and International, as well as transforming its urban logistics and deliveries business in Singapore.
It also identified a list of assets and businesses that are non-core to its strategy, which can be monetised as part of the group’s capital recycling.
Shares of SingPost closed flat at S$0.45 on Thursday.
