SingPost to dilute stake in 4PX with share issuance to Alibaba-tied company

Singpost Centre at Paya Lebar MRT in SingaporeSingpost Centre at Paya Lebar MRT in Singapore in March 2018

Singapore Post said on Wednesday that its associated company Shenzhen 4PX Information and Technology agreed to issue new shares to existing shareholder, Alibaba-tied Zhejiang Cainiao Supply Chain Management, diluting the Singapore company’s interest.

Quantium Solutions International, or QSI, which is a subsidiary of SingPost, currently holds 30.52 percent of 4PX, and after the share subscription is completed, QSI’s stake will be diluted to 19.75 percent and 4PX will cease to be an associated company of SingPost, it said in a filing to SGX.

4PX is a cross-border e-commerce logistics service provider based in Shenzhen, China, it said.

“Cainiao’s further investment in 4PX will allow deeper business integration between 4PX, Alibaba group and SingPost, in particular for cross-border e-commerce volumes,” SingPost said. “The additional equity capital investment by Cainiao also strengthens 4PX’s balance sheet and provides additional funds for expansion so that 4PX will be well positioned to benefit from the rapid growth in China’s e-commerce activities.”

The book value of QSI’s 30.52 percent equity holding in 4PX was S$38.7 million as of 30 June, SingPost said, adding the share subscription’s impact on net tangible assets and earnings per share would be announced later, it said.

Alibaba Group is the holding company of Cainiao and Alibaba Investment, SingPost said. Alibaba Investment owns 14.5 percent of SingPost and 34 percent of QSI, it said.

Singapore Post didn’t immediately respond to an email from Shenton Wire on the compensation QSI will receive for the share issuance.

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