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Business Times
a day ago
- Business
- Business Times
SingPost board should speed up resetting directions
[SINGAPORE] Shareholders of postal service provider Singapore Post (SingPost) could understandably be frustrated and disappointed that the annual general meeting (AGM) held last week did not deliver the answers they wanted. SingPost posted an underlying net loss of S$461,000 for the second half-year ended Mar 31, from a net profit of S$28.1 million in the year-ago period, and attributed the dismal performance to intensifying challenges and uncertain conditions in the global logistics sector. This came after the group divested its key financial contributor Freight Management Holdings at the end of March – without a replacement source of revenue . Selling the cash cow without a Plan B meant the group could only depend on its property business and the unremarkable postal and logistics businesses until whatever future endeavours bear fruit. When investors gathered at the extraordinary general meeting (EGM) in mid-March for the divestment of the key earnings pillar, then-chairman Simon Israel was already bombarded with questions from shareholders . Israel said then that the board did have some ideas, but would need to evaluate them, and work with the chief executive to be appointed on the reset strategy. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He added: 'Maybe by the AGM, which is not that far away, things will be a lot clearer.' Following the EGM, shareholders were distraught at the lack of specific direction on where SingPost – saddled with the declining postal and competitive e-commerce logistics businesses – was headed. Yet, when they sought answers at the AGM last week, they were urged to be patient. Israel, who stepped down at the AGM on Jul 23 after nine years on the board, asked shareholders to allow the reconstituted board and incoming chairman Teo Swee Lian time to work through the 'many options'. His counterpart Teo said these were 'not easy issues'. There are also other stakeholders – customers, the regulators and SingPost staff – to think about in deciding on the future path for the group, she added. To be fair, shareholders are not being impatient, and they are right to press the board about the future of SingPost. Bear in mind that it would take time to put into action whatever plans it has and for the plans to work out – or not. Acquisitions could be risky, given that studies have shown the majority of such corporate actions failed. In fact, SingPost has had an unsuccessful experience in acquisitions in the US, which prompted it to take a prudent, phased approach to buying Freight Management Holdings . A shareholder sought assurance at the AGM that it is worthy to continue holding its shares, while another earlier at the EGM describing the group as a 'sinking boat' was concerned that the remaining sales proceeds from recent divestments would be ploughed into riskier or more volatile business. A third shareholder suggested that SingPost divest all its assets and return the capital to shareholders as he could easily make equivalent investment returns in the current stock market rally rather than wait five years for SingPost's future venture to bear fruit. Although four of its seven members were appointed to the board only between February and May this year and would need time to familiarise themselves with SingPost, time is of the essence in a highly competitive and volatile environment – particularly more so for SingPost operating declining or competitive businesses. Granted, the challenges that SingPost is facing are not easy to overcome and one would argue that the board should not be rushed into decisions. However, it is exactly that the pursuit of viable plans to turn SingPost around has significant implications that there is urgency. What is at stake is not only the shareholders' investments, but also its 3,000 workers' livelihoods and morale. The board should commit to a timeline and not wait till the next AGM to present the path forward for SingPost shareholders and other stakeholders. It may also want to take this suggestion into consideration for its future acquisitions. Granted that the purchase of Freight Management Holdings had saddled SingPost's balance sheet with debt, but it would have and should have made all the calculations before making the offer. In spite of the purchase being seemingly unappreciated by shareholders – it was said that the stock price did not rise in tandem with the contributions from Freight Management Holdings – if the business continues to be a promising one for the group, it should not be sold. It was because one of the objectives of buying Freight Management Holdings was to offset the declining postal business for SingPost. Should another core asset or business in the future fetch an attractive price, especially from an unsolicited offer, SingPost shareholders may want to think about what the offeror could have seen in it that they could have missed.
Business Times
24-07-2025
- Business
- Business Times
SingPost directors quizzed about CEO search and company's future strategies at AGM
[SINGAPORE] National postal service provider Singapore Post's (SingPost) board was pressed by shareholders at its annual general meeting (AGM) on Wednesday (Jul 23) for more information about the path forward as its search for a new chief executive officer drags on. Meanwhile, chairman Simon Israel, at his last SingPost AGM before stepping down, disclosed that the decision to divest SingPost Centre, the group's flagship headquarters building in Paya Lebar, now lies with the reconstituted board, which will review whether the property is non-core to the group and is to be sold. He and other directors were quizzed at the listed firm's 33rd AGM held at Suntec Singapore about the reset strategy that shareholders have been looking forward to since they approved the divestment of the Australian logistics business Freight Management Holdings for A$1 billion (about S$845 million) in March. They were also queried about the CEO who would replace the dismissed predecessor and be tasked with executing the reset strategy. Former CEO Vincent Phang was fired together with group chief financial officer Vincent Yik and CEO of international business unit Li Yu in December 2024 over the alleged mishandling of a whistle-blower's report. The questions from shareholders came as the presentation at the AGM left them none the wiser about SingPost's plans or strategies to replace the divested Australian logistics business, which had been a core business and key financial contributor. One shareholder said the reconstituted seven-member board, including incoming chairman Teo Swee Lian, did not have an idea as yet about the path forward, despite the board renewal and the passage of time. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We came here with a lot of expectation... I feel very disappointed... We already know the current situation, but what's next? What kind of CEO are you looking for to run whatever remains (under) SingPost? 'You tell us to be patient. We have been patient all this while. Today is an important day; I thought you should have at least given us some guidance that (would signal) there is hope for SingPost.' This shareholder also asked the recently appointed non-executive, non-independent director Gan Siok Hoon – deputy group chief corporate officer of Singtel – to share the views of the telecommunications company, considering it is SingPost's major shareholder. Israel pointed out that Gan is not the spokesperson for Singtel. Questions over a new CEO Another shareholder asked the board what kind of CEO it is looking for, and suggested that a new helmsman be appointed only when the board has a clear strategy. 'Because your strategy is still in a little bit of a flux, you may hire a CEO and end up with the CEO (having) nothing much to run… Should you be a bit cautious in terms of hiring the CEO at this point, or should you continue to run with an interim CEO (until the board has) more certainty? Because I think the kind of CEO you need also depends on the strategy that you think the company should pursue.' Teo asked for patience and the opportunity for her board to do a review as these are 'not easy issues'. Also, she flagged that there will be a conversation with 'very important stakeholders' on what to do. She added: 'I do not know of any high-performing organisation that wants to continue the situation without the CEO. I think that's not best practice, really. So we do have to search for a CEO. We're very fortunate, we have the candidates… We will, in due course, identify who the person will be.' The CEO must have leadership quality, think out of the box with a free hand, and be enterprising, Teo elaborated. 'We're looking for people who can actually take a company which is not in the best situation, and still find what can be done in order to get a pathway for (us) to be sustainable in the long term.' A shareholder suggested that SingPost take the privatisation route and liquidate its assets, including SingPost Centre, and return capital to shareholders. But Israel replied that privatisation is not within the board's scope of work and that it requires an external actor. Regarding SingPost Centre The outgoing chairman also told shareholders that the SingPost Centre would be 'the last big piece' to unlock value, after SingPost sold its Australian logistics business in March and its freight-forwarding business this week, as well as the earlier sale-and-leaseback bid of 10 HDB shophouses for S$50 million. SingPost Centre was defined as 'non-core' following a strategic review in 2023-2024, because the board did not think SingPost was a property company, Israel said. The directors have not decided on the timing of the divestment even though the property, last valued at about S$1 billion, has since been earmarked for sale. Israel pointed out that the board has never set out a timeline for the sale of this asset. He added: 'Now that brings us to today's circumstances... It's quite clear that the short-term earnings of SingPost, while it works its way through its strategy and what the future holds and which options it's going to pursue, are underwritten by the property business. 'So it really will be for the board in the future to define whether that remains non-core, it becomes core, or whatever the options are around that property.' The business contributed an operating profit of S$48.4 million for the full year ended Mar 31 – more than any other segment, and higher than the total group operating profit of S$44.3 million after accounting for operating losses in some segments. All 13 resolutions were approved at the AGM that lasted more than 1.5 hours, including for a special dividend of S$0.09 per share to be paid out of the sale proceeds of the Australian logistics business. The counter closed up 2.3 per cent or S$0.015 at S$0.655 on Wednesday.
Business Times
23-07-2025
- Business
- Business Times
SingPost directors quizzed about future strategies and CEO at AGM
[SINGAPORE] National postal service provider Singapore Post's (SingPost) board was pressed by shareholders at its annual general meeting (AGM) on Wednesday (Jul 23) for more information about the path forward as its search for a new chief executive officer drags on. Meanwhile, chairman Simon Israel, at his last SingPost AGM before stepping down, disclosed that the decision of divesting SingPost Centre, the flagship headquarters building in Paya Lebar, now lies with the reconstituted board, which will review whether the property is non-core to the group and is to be sold. He and other directors were quizzed at the listed firm's 33rd AGM held at Suntec Singapore about the reset strategy that shareholders have been looking forward to since they approved the divestment of the Australian logistics business Freight Management Holdings for A$1 billion (about S$845 million) in March. They were also queried about the CEO who would replace the dismissed predecessor and be tasked with executing the reset strategy. Group CEO Vincent Phang was fired together with group chief financial officer Vincent Yik and CEO of international business unit Li Yu in December 2024 over the alleged mishandling of a whistle-blower's report. The questions from shareholders came as the presentation at the AGM left them none the wiser about SingPost's plans or strategies to replace the divested Australian logistics business, which had been a core business and key financial contributor. This caused a shareholder to express his displeasure that the reconstituted seven-member board, including incoming chairman Teo Swee Lian, does not have an idea as yet about the path forward, despite the board renewal and the passage of time. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We came here with a lot of expectation... I feel very disappointed... We already know the current situation, but what's next? What kind of CEO are you looking for to run whatever remains in SingPost? 'You tell us to be patient. We have been patient all this while. Today is an important day; I thought you should have at least given us some guidance that (would signal) there is hope for SingPost.' This shareholder also asked the recently appointed non-executive, non-independent director Gan Siok Hoon – deputy group chief corporate officer of Singtel – to share the views of the telecommunications company, considering it is SingPost's major shareholder. Israel pointed out that Gan is not the spokesperson for Singtel. Questions over a new CEO Another shareholder also asked the board about the kind of CEO it is looking for, and suggested that a new helmsman be appointed only when the board has a clear strategy. 'Because your strategy is still in a little bit of a flux, you may hire a CEO and end up with the CEO (having) nothing much to run… Should you be a bit cautious in terms of hiring the CEO at this point, or should you continue to run with an interim CEO (until the board has) more certainty? Because I also think the kind of CEO you need also depends on the strategy that you think the company should pursue.' Teo asked for patience and the opportunity for her board to do a review as these are 'not easy issues'. Also, she flagged that there will be a conversation with 'very important stakeholders' on what to do. She added: 'I do not know of any high-performing organisation that wants to continue the situation without the CEO. I think that's not best practice, really. So we do have to search for a CEO. We're very fortunate, we have the candidates… We will, in due course, identify who the person will be.' The CEO must have leadership quality, think out of the box with a free hand, and be enterprising, Teo elaborated. 'We're looking for people who can actually take a company which is not in the best situation, and still find what can be done in order to get a pathway for ourselves to be sustainable in the long term.' A shareholder suggested that SingPost take the privatisation route and liquidate its assets, including SingPost Centre, and return capital to shareholders. But Israel replied that privatisation is not within the board's scope of work and that it requires an external actor. Regarding SingPost Centre The outgoing chairman also told shareholders that the SingPost Centre would be 'the last big piece' to unlock value, after SingPost sold its Australian logistics business in March and its freight-forwarding business this week, as well as the earlier sale-and-leaseback bid of 10 HDB shophouses for S$50 million. SingPost Centre was defined as 'non-core' following a strategic review in 2023-2024, because the board did not think SingPost was a property company, Israel said. The directors have not decided on the timing of the divestment even though the property, last valued at about S$1 billion, has since been earmarked for sale. Israel pointed out that the board has never set out a timeline for the sale of this asset. He added: 'Now that brings us to today's circumstances... It's quite clear that the short-term earnings of SingPost, while it works its way through its strategy and what the future holds and which options it's going to pursue, are underwritten by the property business. 'So it really will be for the board in the future to define whether that remains non-core, it becomes core, or whatever the options are around that property.' The business contributed a full-year operating profit of S$48.4 million – more than any other segment, and higher than the total group operating profit of S$44.3 million after accounting for operating losses in some segments. All 13 resolutions were approved at the AGM that lasted more than 1.5 hours, including for a special dividend of S$0.09 per share to be paid out of the sale proceeds of the Australian logistics business. The counter closed 2.3 per cent or S$0.015 up at S$0.655 on Wednesday.
Independent Singapore
23-07-2025
- Business
- Independent Singapore
SingPost completes S$177.9M sale of entire freight forwarding business
FB screengrab/ SingPost SINGAPORE: Singapore Post Limited (SingPost) has divested its entire freight forwarding business conducted through Famous Holdings Pte Ltd (FHPL) and Rotterdam Harbour Holding B.V. (RHH) for around S$177.9 million, according to the company's media release on Tuesday (July 22). The sale was carried out in two parts to separate buyers. The first was sold to DP World Logistics FZE for about US$97.7 million (S$125.5 million), while the other was sold to a consortium that includes some of Famous Holdings' minority shareholders for around €35.7 million (S$52.4 million). SingPost said the deal resulted in a gain of about S$10.5 million and freed up S$104 million in cash for the company. SingPost's chairman Simon Israel said the move is part of the company's strategy, announced in March 2024, to divest non-core assets and recycle capital. 'Following a comprehensive international sale process to explore various options for Famous Holdings, the Board concluded that selling the business in two parts would secure the highest possible valuation,' he added. SingPost said the proceeds will contribute to the company's cash balance, which shall be determined by the board based on the company's funding needs. The sale follows SingPost's divestment of its Australian logistics business, Freight Management Holdings (FMH), to private equity firm Pacific Equity Partners for about S$845 million in March. /TISG Read also: Singapore customers can now drop off FedEx parcels at any SingPost POPStop counter and POPStop@Tampines MRT () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
Straits Times
22-07-2025
- Business
- Straits Times
SingPost divests freight forwarding business Famous Holdings for $177.9 million
Find out what's new on ST website and app. The sale resulted in an estimated realised gain on disposal of $10.5 million and about $104 million in cash for the company, said the national postal service provider on July 22. SINGAPORE - Singapore Post (SingPost) has divested its entire freight forwarding business, Famous Holdings, for about $177.9 million. The sale resulted in an estimated realised gain on disposal of $10.5 million and about $104 million in cash for the company, said the national postal service provider on July 22. It noted that the sale was carried out in two parts. Supply chain solutions provider DP World Logistics FZE acquired the entire issued share capital of SingPost Logistics Investments' unit for about US$97.7 million (S$125 million). A consortium, which includes some of Famous Holdings' minority shareholders, acquired the entire issued and outstanding shares of Rotterdam Harbour Holding for about €35.7 million (S$52.4 million). Rotterdam Harbour Holding is a unit of SingPost eCommerce Logistics Holdings. The net asset value of Famous Holdings as at March 31 is about $176 million, including Rotterdam Harbour Holding, which was a subsidiary of Famous Holdings. Excluding Rotterdam Harbour Holding, the net asset value of Famous Holdings is $146 million as at end-March 2025. Rotterdam Harbour Holding's net asset value was $30 million as at March 31. 'This is a step in SingPost's strategy announced in March 2024, to divest non-core assets and businesses to recycle capital,' said Mr Simon Israel, SingPost's chairman. Top stories Swipe. Select. Stay informed. Singapore Two found dead after fire in Toa Payoh flat Singapore Singaporeans aged 21 to 59 can claim $600 SG60 vouchers from July 22 Singapore Singaporeans continue to hold world's most powerful passport in latest ranking Singapore Singapore, Vietnam agree to step up defence ties, dialogue among leaders Asia Malaysia govt's reform pledge tested as DAP chief bows over unresolved 2009 death of political aide Singapore Woman evacuated from lift in Supreme Court building after falling glass triggers emergency halt Singapore Prosecution says judge who acquitted duo of bribing ex-LTA official had copied defence arguments Singapore Ports and planes: The 2 Singapore firms helping to keep the world moving 'Following a comprehensive international sale process to explore various options for Famous Holdings, the board concluded that selling the business in two parts would secure the highest possible valuation.' The disposals are expected to benefit SingPost by monetising non-core assets, reducing financial liabilities and improving shareholder value. Proceeds from the sale will contribute to SingPost's cash balance.
