SingPost to acquire stake in Indo Trans Logistics

Singapore Post has said it will acquire a 30 per cent stake in Indo Trans Logistics Corporation (ITL) for US$10.8 million.

The deal will be made through its wholly-owned subsidiary, Singapore Post Enterprise, and the acquisition is expected to help the firm gain a foothold in the Vietnam and the Indo-China region.

ITL is a Vietnamese firm that offers integrated logistics solutions. It has air and sea freight forwarding, third-party logistics solutions and distribution, and a general sales agency for airlines.

It started operations in 1999 and has offices in key cities in Vietnam.

"SingPost has stepped up its efforts to transform and grow, and we have been actively pursuing growth beyond our mail business and expanding into the region," said Dr Wolfgang Baier, SingPost's chief executive officer (International).

He added: "We want to grow our overseas revenue and achieve a more balanced portfolio with bigger contributions from non-mail businesses. Clearly, our key growth drivers will be in the areas of logistics and e-commerce."

SingPost has so far made several acquisitions to diversify its revenue base and expand its business beyond Singapore's shores.

It has also set up two wholly-owned subsidiaries - Quantium Solutions, a mail-logistics solutions provider and DataPost, a hybrid mail business - which generate businesses outside Singapore.

SingPost's other investments include a 27 per cent stake in a Malaysian express carrier service and a 30 per cent stake in Postea Inc, a US incorporated technology company.