Alibaba boosts Singapore Post stake, invest in e-commerce unit
SINGAPORE (Reuters) - Chinese e-commerce giant Alibaba Group Holding Ltd is investing about S$279 million ($205.98 million) to expand its holdings in Singapore Post Ltd (SingPost) 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 .
SingPost shares were up 1.32 percent in early trade after the announcement, outperforming a largely flat market.
(Reporting by Saeed Azhar; Editing by Miral Fahmy)
