ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

The news is out :
- ISSUANCE AND TRANSFER OF 220,096,000 ORDINARY SHARES IN THE CAPITAL OF SINGAPORE POST LIMITED TO ALIBABA INVESTMENT LIMITED
- MEMORANDUM OF UNDERSTANDING IN RELATION TO A STRATEGIC BUSINESS COOPERATION WITH ALIBABA INVESTMENT LIMITED FOR THE CREATION OF AN INTERNATIONAL ECOMMERCE LOGISTICS PLATFORM

Singapore Post Limited (SingPost) and Alibaba Group Holding
Limited (Alibaba Group) today announced that SingPost and Alibaba Investment Limited, a
wholly-owned subsidiary of Alibaba Group Holding Limited, have entered into an investment
agreement under which Alibaba Investment Limited will invest S$312.5 million to purchase 30
million existing ordinary shares held in treasury by SingPost and 190.096 million new ordinary
shares and take a 10.35% stake in SingPost upon completion. Both companies also signed a
memorandum of understanding (MOU) which will allow them to discuss and negotiate a joint
venture (JV) in respect of the business of international e-commerce logistics. This strategic
business cooperation will also tap into other e-commerce opportunities in Southeast Asia and
beyond by providing amongst other things, greater access to SingPost’s international logistics
capabilities, infrastructure and delivery networks, and as well as end-to-end solutions to Alibaba
Group customers and merchants.
...

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

Wow... SingPost + Alibaba, what a corporation...

(not vested)

(28-05-2014, 03:21 PM)cyclone Wrote: [ -> ]The news is out :
- ISSUANCE AND TRANSFER OF 220,096,000 ORDINARY SHARES IN THE CAPITAL OF SINGAPORE POST LIMITED TO ALIBABA INVESTMENT LIMITED
- MEMORANDUM OF UNDERSTANDING IN RELATION TO A STRATEGIC BUSINESS COOPERATION WITH ALIBABA INVESTMENT LIMITED FOR THE CREATION OF AN INTERNATIONAL ECOMMERCE LOGISTICS PLATFORM

Singapore Post Limited (SingPost) and Alibaba Group Holding
Limited (Alibaba Group) today announced that SingPost and Alibaba Investment Limited, a
wholly-owned subsidiary of Alibaba Group Holding Limited, have entered into an investment
agreement under which Alibaba Investment Limited will invest S$312.5 million to purchase 30
million existing ordinary shares held in treasury by SingPost and 190.096 million new ordinary
shares and take a 10.35% stake in SingPost upon completion. Both companies also signed a
memorandum of understanding (MOU) which will allow them to discuss and negotiate a joint
venture (JV) in respect of the business of international e-commerce logistics. This strategic
business cooperation will also tap into other e-commerce opportunities in Southeast Asia and
beyond by providing amongst other things, greater access to SingPost’s international logistics
capabilities, infrastructure and delivery networks, and as well as end-to-end solutions to Alibaba
Group customers and merchants.
...

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

After reading bouts of delisting of fairly decent companies, it is great to know that there are still capital flowing into our market to sturdy non-speculative companies. This JV could be highly beneficial to both clients and investors.

(Not Vested)

If my maths is correct, AliBaba got the stake for roughly $1.42, that's a 9.2% discount from yesterday's closing of $1.55.

I'm not really sure what to make of the discount? Of cos I understand that with a large stake purchase, there's usually a discount attached to the purchase price; but does it strikes anyone that 9.2% is quite large?

If I remember correctly, there is snergy to be achieved. SIngpost distribution is in SEA and Alibaba China, and it is the bigger market buying into the smaller market

Not vested

=( But told my MIL and wife to take profits yesterday, sigh....

I bought Singpost for my Mum last year.

When I told her this news over the phone just now, she could not understand. She just asked me if it is good or bad. LOL...

I told her just sit back and continue to collect dividends.


(My Mum is vested)

(28-05-2014, 04:23 PM)lonewolf Wrote: [ -> ]If my maths is correct, AliBaba got the stake for roughly $1.42, that's a 9.2% discount from yesterday's closing of $1.55.

I'm not really sure what to make of the discount? Of cos I understand that with a large stake purchase, there's usually a discount attached to the purchase price; but does it strikes anyone that 9.2% is quite large?

Once the halt is lifted, the discount will be much higher.

Yeah, millions of Chinese buying through Alibaba, Aliexpress, Taobao etc. and shipping out from Singapore.

(28-05-2014, 04:23 PM)lonewolf Wrote: [ -> ]If my maths is correct, AliBaba got the stake for roughly $1.42, that's a 9.2% discount from yesterday's closing of $1.55.

I'm not really sure what to make of the discount? Of cos I understand that with a large stake purchase, there's usually a discount attached to the purchase price; but does it strikes anyone that 9.2% is quite large?

It is the volume weighted average prices (VWAP) counts, rather on closing price on a single day. The various VWAPs may tell a different story than the last closing price.

May be the news leaked before the announcement.

(not vested)

(28-05-2014, 04:56 PM)edragon Wrote: [ -> ]Yeah, millions of Chinese buying through Alibaba, Aliexpress, Taobao etc. and shipping out from Singapore.

The JV will kill the business of those small logistic service providers.

There are small service providers who offer shipping services from various parts of China to Singapore.