SINGAPORE - Chinese e-commerce giant Alibaba Group Holding Ltd (BABA.N
) is investing about S$279 million ($205.98 million) to expand its holdings in Singapore Post Ltd (SingPost) (SPOS.SI
) and its e-commerce subsidiary, the two companies said in a statement.
SingPost is seeking to boost its e-commerce business to offset weak postal revenues, and last year an Alibaba unit bought an over 10 percent stake in SingPost for $249 million.
In the latest deal, Alibaba said it was buying an additional 5 percent stake in SingPost for S$187.1 million.
Alibaba will also invest up to S$92 million to buy a 34 percent stake in Quantium Solutions International, a SingPost subsidiary that provides e-commerce logistics across the Asia Pacific.
Alibaba is currently the second largest shareholder in SingPost after Singapore Telecommunications (STEL.SI
SingPost shares were up 1.32 percent in early trade after the announcement, outperforming a largely flat market. - Reuters