Singapore Post’s (SingPost) board has approved five growth drivers or “strategic thrusts” to be executed over the next three years, including the adoption of a new payout scheme.
This comes as the group on Tuesday (Mar 19) announced that it completed its strategic review, less than a year after it was initiated in May 2023.
The review was led by exclusive financial adviser BofA Securities, and focused on transitioning the group to a logistics business over time.
Firstly, the group will be reorganised into three business units: Singapore, Australia and International. Such a corporate structure “creates flexibility and facilities future optionalities”, it said.
Next, the group targets for each of these business units to generate a spread above the cost of capital.
To do so, it has identified a list of its non-core assets and businesses – including selected properties and various international assets – which may be monetised for capital recycling.
SingPost will also endeavour to pay out 30 to 50 per cent of its underlying net profit from FY2024 to FY2025. It said the board views such a policy as “balanced” in view of the group’s capital requirements and delivering “sustainable returns” to shareholders.
SingPost shares gained 5.3% in Tuesday’s tradings.
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