The former will invest S$312.5 million (US$249 million) to purchase 30 million existing ordinary shares held in treasury by SingPost and 190.096 million new ordinary shares, as well as a 10.35 per cent stake in the latter, according to an official document.
Having signed a memorandum of understanding, both companies will go forward to talk about a joint venture in terms of international e-commerce logistics. This will give Alibaba Group a quick route to SingPost’s logistics capabilities, infrastructure and delivery networks globally. SingPost will also be able to provide end-to-end solutions to Alibaba Group customers and merchants.
Daniel Zhang, Chief Operating Officer, Alibaba Group said: “… Through this collaboration, we hope to create concrete benefits for our overseas buyers and sellers by enhancing the user experience and providing greater access to a suite of international e-commerce logistics solutions and products.”
SingPost has invested S$100 million (US$80 million) into improving customer service and productivity. Wolfgang Baier, Group Chief Executive Officer, SingPost added that initiatives include replacing mail sorting machines, delivery fleets and offering 24/7 services like POPStation, which allows consumers to pick up their packages without going to the post office.
Singapore Post Limited (SingPost) provides an integrated suite of mail, logistics and retail solutions in Singapore and the Asia Pacific region.