SingPost to sell General Storage to Mitsuuroko subsidiary for around S$85M

Singapore Post post boxes at the SingPost mCentre March 2018.Singapore Post post boxes.

Singapore Post’s wholly owned subsidiary SingPost Investments has entered to deal to sell General Storage Co. (GSC) to Tokyo-listed Mitsuuroko Group’s subsidiary Triforce Investments for around S$85.1 million, the Singapore post office operator said in a filing to SGX Thursday.

The deal is expected to give SingPost a gain of around S$6 million after transaction costs, the company said.

“The proposed disposal is consistent with SingPost Group’s strategy of recycling capital by divesting non-core assets,” the company said in the filing. “The proceeds would be redeployed towards enabling the SingPost Group to continue executing its transformation initiatives and
reposition itself for long term, sustainable growth.”

GSC’s business is mainly providing warehousing, storage and logistics services.

The latest valuation of GSC at end-March had valued the group at S$77 million to S$91 million, based on several valuation methods, SingPost said.

For fiscal 2021, GSC had net profit of around S$2.6 million, compared with SingPost’s S$60.3 million, the filing said.

On a pro forma basis, assuming the disposal had been completed on 1 April 2020, SingPost’s net profit would have been S$46.45 million, compared with S$47.62 million without the disposal, according to estimates in the filing.