Singapore Post has announced that its wholly owned subsidiary, Singpost Investments, has entered into a sale and purchase agreement (SPA) to dispose of General Storage Company (GSC) for $85.1 million with Triforce Investments.
Triforce is a subsidiary of Tokyo listed Mitsuuroko Group Holdings, based in Japan.
GSC and its subsidiaries are mainly involved in the business of providing warehousing, storage, and logistics services.
In a release, Singpost said the transaction was consistent with its strategy of recycling capital by divesting non-core assets.
The disposal is estimated to result in a gain of approximately $6 million after transaction costs, and the proceeds would be redeployed towards “enabling the SingPost Group to continue executing its transformation initiatives and reposition itself for long term, sustainable growth,” the company said.
In addition, the consideration was “mutually arrived after arms’ length negotiations”, and on a willing-seller and willing-buyer basis.
According to Singpost, the latest valuation of the GSC Group values the it at between $77 million and $91 million as at 31 March.
GSC’s net asset value stands at $78.1 million, about 4.7% of the total Singpost NAV of $1.67 billion. Its attributable net profit for FY2021 ended 31 March was $2.6 million, or 4.3% of Singpost’s $60.3 million profit in FY2021.
The disposal will increase the net tangible assets per share of Singpost from 60.3 to 62 cents, while dropping its earnings per share from 1.46 cents to 1.4 cents.
Shares of Singpost closed flat at 66 cents on Sep 2.
