SingPost is selling its key Australia-based unit Freight Management Holdings for A$1.02 billion in cash. Upon completion of the divestment, SingPost will realise a gain of $312.1 million.
Jarick Seet of Maybank Securities has maintained his "buy" call on SingPost along with a 77 cents target price, on expectations that the company can return up to 86 cents per share to shareholders over the coming two years with its asset monetisation move starting to get underway.
Seet's Dec 6 note refers to a Dec 5 note by ratings agency S&P which puts SingPost on negative credit watch, citing "uncertainty" over future earnings prospects of the company.
