FAQs shareholders need to know for SingPost’s EGM

SingPost will be convening an EGM to seek shareholders’ approval for the proposed issuance of 107.6 million shares to Alibaba Investment Limited, which will increase Alibaba’s stake in SingPost from 10.2% to 14.4%.

The EGM will be held on 5 Jan 2017, Thursday 1030am at Suntec City Convention Centre.

Here are some FAQs you need to know before you should vote at the EGM:

Q1: What is the proposed issuance about? 

Answer

• SingPost has entered into an agreement to issue 107,553,907 New Shares to Alibaba Investment Limited at a subscription price of S$1.74 per New Share.
• Alibaba’s shareholding in SingPost will increase from approximately 10.2% to approximately 14.4%

Q2: What is the rationale for the proposed issuance?

Answer

• There is strong business rationale for deepening the strategic partnership with Alibaba.
• The proposed issuance:
  

  Demonstrates Alibaba Group’s long term support for SingPost’s ecommerce logistics vision and willingness to share the risks and rewards to achieve it Further raises SingPost and QSI’s profiles among customers Accelerates existing and new revenue-generating initiatives between SingPost and Alibaba Group in ecommerce logistics Advances build-up of ecommerce logistics infrastructure and services Strengthens SingPost’s overall capital base to capitalise on potential acquisition opportunities and continue with its long-term growth and expansion

Q3: How was the subscription price arrived at?

Answer

• The subscription price of $1.74 per share represents a 7.89% discount to the volume weighted average price per Share for trades done on 7 July 2015 (being the Market Day before the agreement in relation to the Proposed Issuance was signed).
• The subscription price was arrived at following negotiations and having taken into account, among others: market precedents for similar transactions, including the 2014 Issuance of Shares to Alibaba Group; and the overall business collaboration with Alibaba Group.

Q4: What is the use of proceeds?

Answer

The net proceeds raised of approximately S$183.6 million will principally be used for the following purposes:

a) SingPost Group’s business of eCommerce logistics for purposes such as investments, mergers and acquisitions and the upgrade of operations and information technology systems (75%); and

b) General working capital of the SingPost Group (25%)

Q5: Can you share more information about the Alibaba Group?

Answer

• The Alibaba Group, with a mission “to make it easy to do business anywhere”, together with its related companies, operates an ecosystem where online and mobile commerce participants can leverage the power of the Internet to establish and grow their business as well as meet consumer demand efficiently.
• The Alibaba Group and its related companies operate a range of online e-commerce platforms, including AliExpress, a global online marketplace for consumers to buy directly from China; Taobao Marketplace, China’s largest online shopping destination in terms of gross merchandise volume; and Tmall, China’s largest third-party platform for brands and retailers in terms of gross merchandise volume.
• For more information on Alibaba Group, please visit www.alibabagroup.com.

NOTE
If you are unable to attend the EGM, please complete, sign and return the proxy form which must reach SingPost by 3 Jan 2017. Please be informed that SingPost will not be distributing any vouchers at the EGM and only bottled water will be served.

Kindly refer to the attached Circular for more information on the proposed issuance.
Circular date 21 December 2016