Singapore Post has reaffirmed its ongoing strategy of divesting non-core businesses and assets, and that the transformation of its domestic postal business is going ahead as well.
The company made these comments on Dec 29 after the termination of its three top executives on Dec 22 over the mishandling of whistle-blowing reports.
All three executives have said they will contest the termination.
The abrupt firing of these three individuals, including former group CEO Vincent Phang, former group CFO Vincent Yik and former head of its international business unit Li Yu, has also raised questions if there is a deeper, underlying rift between the board and the management team.
Of particular note is SingPost's planned divestment of FMH in Australia for an enterprise value of A$1.02 billion, which was announced on Dec 2.
Some market analysts such as S&P have warned that while the sale can help reduce SingPost's debt, it will also be devoided of a substantial operating business and the move is an unwinding of a previous multi-year overseas expansion strategy.
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In its Dec 29 statement, SingPost says it is going ahead with seeking shareholders' nod for the proposed divestment of FMH at an EGM that is likely to be held in February.
"The board is working closely with the management team to ensure the successful completion of the proposed divestment," says SingPost.
"The board reaffirms its intent to progressively divest and unlock the value of non-core businesses and assets," the company says, without referring to divestment candidates such as the SingPost Centre and some of the post offices that are deemed under-utilitised.
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However, SingPost cautions that there may be adjustments in the phasing and timing of further disposals.
SingPost shares closed at 52 cents, down 0.95% for the day.
