The board, according to SingPost Chairman Simon Israel, believes that the group’s share price “does not properly reflect the fundamental value of the company.”
” This is especially obvious considering the value of the SingPost Centre, the team’s American company and the team’s progress potential”, Mr Israel said.
SingPost’s share value has been trending downward, closing at 38 percent on Monday. As of lunchtime on Tuesday, the share price rose 6.6 per share to 40 percent.
SingPost’s Group CEO, Vincent Phang, stated,” We have gradually transitioned from a traditional postal organization to a shipping business and are well positioned to utilize e-commerce logistics growth trends to grow our businesses.
We are focused on carrying out our corporate objectives to lead the market, foster progress, and create shareholder value.
Two BUSINESS UNITS
According to Singpost, the three company units “each have the athleticism and independence to work in their own markets, to build market leadership, and to develop their core capabilities according to their specific strategies.”
The home post and e-commerce logistics businesses will be combined into one operation by the Singapore business unit.
In Australia, its firms of Freight Management Holdings, CouriersPlease and Border Express may be integrated into a single system to sell” a whole set of shipping service”.
Cross-border e-commerce sales will be managed by the international business system.
SingPost claimed to have found a list of assets and businesses that are “non-core to its plan” and” that can be” financially. This includes a number of resources in its global investment, as well as some particular properties.
The dividend policy was furthermore reviewed as part of the corporate assessment in light of the group’s transition to a technology-driven international logistics business focused on growth, Singpost said.
The board will start paying dividends on underlying net profits of between 30 % and 50 % starting in the upcoming fiscal year.