Friday, May 30, 2014

Alibaba to invest in Singapore’s mail carrier

News this week: The leading e-commerce company in China, Alibaba Group, has plans to invest S$312.5 million (US$250 million) in Singapore’s publicly-traded mail carrier, Singapore Post Ltd. (SingPost).

Under the agreement, Alibaba’s subsidiary, Alibaba Investment Ltd. will buy a 10.35% stake in SingPost, including 30 million of the existing ordinary shares and 190 million new ordinary shares. Part of the deal will also see the formation of a joint venture (JV) in international e-commerce logistics.

According to a press release issued by SingPost and Alibaba, the JV will explore “e-commerce opportunities in Southeast Asia and beyond by providing… greater access to SingPost’s international logistics capabilities, infrastructure and delivery networks, as well as end-to-end solutions to Alibaba Group customers and merchants.”

SingPost is Singapore’s designated postal carrier and listed on the Singapore Stock Exchange.

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

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