Singapore Post Limited’s (SingPost) sale of Australian business Freight Management Holdings (FMH) has taken another step forward, with the company’s shareholders voting almost unanimously in favour of the sale.
Over 99 per cent of eligible shareholders voted at an extraordinary general meeting on March 13 to sell FMH to Australian private equity firm Pacific Equity Partners.
The sale of the business at an enterprise value of $1.02 billion will see Singapore Post acquire $775.9 million in gross proceeds and a capital gain of roughly $345 million.
Over $360 million of the sale will be put towards borrowings taken by SingPost to finance the acquisition of FMH. It initially bought a 28 per cent stake in December 2020 before raising that to 51 per cent in 2021.
A transaction in January 2023 then boosted SingPost’s stake in FMH to 88 per cent.
FMH operates some of Australia’s most recognisable transport and logistics companies, including efm Logistics, CouriersPlease, Border Express, BagTrans, FLIP, Niche Logistics, GKR Transport, Formby Logistics and Spectrum Transport Systems.
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