SINGAPORE: Singapore Post (SingPost) has cautioned that there is “no certainty” that its plan to sell non-core assets and businesses will go through as expected.
This announcement follows the company firing its three senior executives, including Group CEO Vincent Phang, which raised questions about whether SingPost will continue its efforts to cut debt, monetise assets, and potentially pay special dividends to shareholders.
The company’s FMH sale in Australia is of particular interest.
According to The Edge Singapore, the company has reiterated that the sale of FMH in Australia, valued at over A$1 billion (S$852.57 million), will proceed and has scheduled an Extraordinary General Meeting (EGM) by the end of February to seek shareholder approval.
Maybank Securities has estimated that SingPost could pay special dividends of up to 86 cents per share over the next few years if its asset sales are successful.
In its Jan 3 strategy note, Maybank listed SingPost among its top ten picks for the year, setting a target price of 77 cents per share.
However, SingPost’s Jan 6 announcement referred to a report by Maybank Securities suggesting that the sale of Famous Holdings, another unit, could be finalised by the end of the month, raising between S$80 million and S$100 million.
SingPost said, “No definitive or binding agreement in relation to the sale of Famous Holdings has been entered into at this time.”
The company also referred to its Dec 29 announcement, indicating that there could be changes in the timing and order of its asset disposals. It also said the board plans to review and restate its strategy “in due course.”
Other dismissed senior executives, Group CFO Vincent Yik and former SingPost International Business Unit (IBU) CEO Li Yu, are also challenging their terminations, and the Securities Investors Association Singapore (SIAS) has called for an independent investigation into the matter. /TISG