Singapore Post (SingPost) and Alibaba Group, this week signed a joint venture agreement to build a leading e-commerce logistics platform to service rapidly growing e-commerce businesses across Asia Pacific. Both companies have also entered into a joint strategic business development framework to further improve efficiency and integration of e-commerce logistics solutions.
Alibaba will invest up to approximately S$92 million (US$67.85 million) in Quantium Solutions International (QSI), a wholly-owned subsidiary of SingPost providing leading end-to-end e-commerce logistics and fulfilment services across the Asia Pacific region for a 34 percent stake in the company. SingPost will hold the remaining 66 percent of the equity. In addition, Alibaba Group will purchase 107,553,907 new ordinary shares amounting to 5 percent of the existing share capital of SingPost for S$187.1 million (US$138.6 million) to increase its current 10.23 percent stake in SingPost to 14.51 percent.
Daniel Zhang, CEO, Alibaba Group
This additional investment into SingPost and establishment of a joint venture signify our commitment in expanding our global logistics footprint, which in turn will help Chinese businesses sell, and global brands deliver more easily around the world.
Wolfgang Baier, Group CEO, SingPost
We are now taking the next step by building a regional e-commerce logistics platform and infrastructure for e-commerce players across Asia Pacific based on Quantium Solutions – our e-commerce logistics subsidiary.
