Shares in Singapore Post fell as much as 6 per cent on Monday, May 15, 2017, according to a report by Todayonline. This is their lowest in more than a year after the company said it was conducting an in-depth review of the acquisition of TradeGlobal.
TradeGlobal is a US e-commerce firm for which SingPost took a massive impairment charge of S$185 million. SingPost had bought the firm for about S$236 million in 2015.
SingPost had reported an 87 percent plunge in net profit for the financial year ended that ended in March. In a statement, SingPost said TradeGlobal "significantly under-performed the business case which supported the investment", and that it was "experiencing operational and structural challenges".
SingPost has China's e-commerce giant Alibaba Group and Singapore Telecommunications among its top shareholders. The company's board had formed an independent committee to conduct a thorough review of the deal.
A legal counsel was also engaged to assist SingPost on the review; advisory firm FTI Consulting was appointed to assess the financial and commercial due diligence involved.
