The group intends to utilise cash proceeds to repay Australian dollar denominated borrowings of A$362.1 million, which were undertaken to finance the acquisition of FHM previously. With the disposal, the entire A$614.8 million of the group’s books would be repaid.
Singapore Post's (SingPost) shareholders have voted in favour of the disposal of its Australian business, Freight Management Holdings (FHM) at an EGM held on March 13. It received 99.90% vote in favour of the disposal to Pacific Equity Partners.
Upon completion of the disposal, SingPost will receive cash proceeds of A$775.9 million ($651.65 million) from the sale, which is the equity value of FHM after adjusting the enterprise value for debt carried.
