SINGAPORE: February 16, 2016. Singapore Post has purchased an additional 17.91 percent of the equity in Shenzhen 4PX Information Technology (4PX) for S$36 million.
Under the deal, SingPost through its wholly-owned subsidiary Quantium Solutions International has increased its equity interest in 4PX from 18 percent to 35.91 per cent.
Headquartered in Shenzhen, 4PX provides logistics, software and consulting services to 20,000 merchants in more than 50 locations in China and globally.
Ms Goh Hui Ling, SingPost deputy CEO, International Mail said: “The additional investment in 4PX, with its extensive logistics capabilities in warehousing, express delivery and freight forwarding, is a key part of SingPost’s strategy to leverage on the rapid growth in China’s eCommerce activities.”
Formed in 2004, 4PX has more than 2,600 employees and operates warehouses in China, Australia, UK, Germany and the US.
In a related move SingPost has made a profit of S$64 million from the partial sale of its stake in GD Express Carrier (GDEX) for S$78.4 million to Yamato Asia, a subsidiary of Yamato Holdings. SingPost now has a 11.2 percent shareholding in GDEX.
Group CFO Mervyn Lim noted: “This deal gave us a good return on our investment and also boosted our available resources to drive SingPost's eCommerce logistics growth as it pivots into the U.S. with the recent investments in TradeGlobal and Jagged Peak.”
The company said it would continue to reap business synergies through its collaboration with GDEX and Yamato: “Collaborations and partnerships are vital to SingPost as we connect the dots in building a global eCommerce logistics ecosystem. We continue to work with strategic partners in Malaysia and the rest of Southeast Asia while leveraging the Quantium Solutions commercial network, as well as those of our associated companies to reinforce the ecosystem we are building,” added Lim.