SingPost and Alibaba Group to expand e-commerce logistics cooperation

Alibaba Group to increase equity stake in SingPost to 14.51 percent subject to regulatory approval and to invest in Quantium Solutions International

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On 8 July, Singapore Post Limited (“SingPost”) and Alibaba Group Holding Limited (“Alibaba”) announced a series of new initiatives for collaboration and growth following the signing of a joint venture agreement. The three initiatives signal the deepening of a business relationship that started last year and a commitment from both parties to increase e-commerce logistics collaboration in the future to build a leading ecommerce logistics platform to service the rapidly growing ecommerce businesses across Asia Pacific and beyond.
Initiative One: Alibaba will invest up to approximately S$92 million (USD67.85 million) in QSI for a 34 percent stake in Quantium Solutions International (“QSI”), SingPost will hold the remaining 66 percent of the equity of QSI. QSI is currently a wholly owned subsidiary of SingPost providing leading end-to-end ecommerce logistics and fulfilment services across the Asia Pacific region. Its network spans more than 10 countries and the company offers customers ecommerce logistics solutions and warehousing across Asia Pacific. QSI will reorganize its business and become the joint venture vehicle of SingPost and Alibaba Group. This will allow QSI to ramp up its development of ecommerce logistics infrastructure and services. In addition, QSI will also become a platform for both parties to strengthen their collaboration and realize synergies across their businesses. QSI will encompass ecommerce warehousing, last mile delivery and other end-to-end ecommerce solutions.
Initiative Two: Alibaba Group will purchase 107,553,907 new ordinary shares amounting to 5 percent of the existing share capital of SingPost for S$187.1 million (USD138.6 million). Upon completion, Alibaba’s deemed interest on a fully diluted basis in SingPost will rise from 10.23 percent to 14.51 percent. Alibaba Group’s acquisition of additional equity in SingPost is subject to Info-Communications Development Authority of Singapore (IDA) and SingPost’s shareholder approvals. Alibaba Group acquired its initial stake in SingPost in 2014.
Initiative Three: SingPost and Alibaba have also entered into a joint strategic business development framework to further improve efficiency and integration of ecommerce logistics solutions. SingPost and Alibaba will share their respective knowledge and leverage each other’s strengths to scale across the ecommerce logistics value chain. A joint Steering Committee will be created and drawn from their respective executives.
Singapore Post (SingPost) is the leading provider of mail, logistics and ecommerce solutions in Singapore and the Asia Pacific region, with operations in more than 10 countries. As part of its transformation, it has been steadily expanding beyond Singapore, leveraging its regional platform Quantium Solutions and other subsidiaries and partners. With its regional network and infrastructure, SingPost offers fully integrated ecommerce logistics solutions covering the four areas of freight, customs & regulations management, warehousing & fulfilment, last mile delivery & returns, as well as ecommerce web services, to its customers.
Alibaba Group’s mission is to make it easy to do business anywhere. The company is the largest online and mobile commerce company in the world in terms of gross merchandise volume. Founded in 1999, it provides the fundamental technology infrastructure and marketing reach to help businesses leverage the power of the Internet to establish an online presence and conduct commerce with hundreds of millions of consumers and other businesses.
Alibaba Group’s major businesses include:
• Taobao Marketplace (www.taobao.com), China’s largest online shopping destination
• Tmall.com (www.tmall.com), China’s largest third-party platform for brands and retailers
• Juhuasuan (www.juhuasuan.com), China’s most popular online group buying marketplace
• Alitrip (www.alitrip.com), a leading online travel booking platform
• AliExpress (www.aliexpress.com), a global online marketplace for consumers to buy directly from China
• Alibaba.com (www.alibaba.com), China’s largest global online wholesale platform for small businesses
• 1688.com (www.1688.com), a leading online wholesale marketplace in China
• Aliyun (www.aliyun.com), a provider of cloud computing services to businesses and entrepreneurs
www.singpost.com

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