Singapore Post - UOB Kay Hian 2024-12-03: Leaving Australia While Creating Shareholder Value

• Upon completing its strategic review, SingPost announced that it has entered an agreement to completely divest its Australian business by end-FY25. The group plans to use cash proceeds to deleverage its balance sheet which would result in significant interest cost savings and turn the group into a net cash position.
• - Read this at SGinvestors.io -

Full divestment of Australian business

• As a recap, Singapore Post (SingPost, SGX:S08) initiated a strategic review of its Australian business to explore options to drive growth and maximise shareholder value. Upon completion of the strategic review, SingPost recently announced that it has entered a sales and purchase agreement with Pacific Equity Partners (PEP) for the complete sale of its Australian business.
• - Read this at SGinvestors.io -
• Pending approval, the transaction is expected to be completed by end-Mar 25 (end-FY25).
• Also, given that Pacific Equity Partners (PEP) is headquartered in Australia and is reported to be the country’s largest private equity firm with multiple domestic investments across different industries, the transaction is unlikely to be rejected by the Australian authorities in our view.

Stronger balance sheet & potential special dividend.

• Read more at SGinvestors.io.

Llelleythan Tan UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-12-03 SGinvestors.io

---