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.