SingPost share price back up at S$0.56 after plunging to S$0.50 just 2 weeks ago

There is speculation that a “significant” special dividend could be on the horizon. SingPost has responded.

Belmont Lay

January 06, 2025, 04:16 PM

SingPost shares are back up at S$0.56 on Jan. 6, 2025.

The share price rose by half a cent to 56 cents late Monday morning, marking a 0.9 percent increase from Friday's closing value.

This was after the price plunged more than 10 per cent on Monday, Dec. 23, after the Singapore market opened for trading at the start of the short Christmas week, following the revelation that it had fired its chief executive and two other senior executives.

Prices had hovered at around S$0.56 prior to the Dec. 22 announcement by SingPost.

The price comeback was staged over the past two weeks, during which SingPost's former executives made public statements saying their termination was without merit, and that they would contest the decision.

SingPost then defended its decision in another statement on Dec. 29, which detailed the investigation and disciplinary processes that led to the firing of three former executives, along with "serious misrepresentations" they had made to the company's Audit Committee.

Most recently, over the weekend, there was also news of discussions pertaining to the sale of its assets.

However, SingPost, clarifying a media report published on Jan. 3, said before the stock market opened on Monday that there is no certainty that any transaction will arise, even though discussions with various parties for the sale of its assets have taken place.

According to The Straits Times, research house Maybank Securities had said in a report that the national postal service provider could offer a potentially “significant” special dividend after it sells two business units — Australian logistics business Freight Management Holdings and freight forwarding business Famous Holdings.

Maybank also said the sale of Famous Holdings should conclude by the end of January 2025 and could raise between S$80 million and S$100 million in proceeds.

SingPost clarified on Monday in response that "no definitive or binding agreement in relation to the sale of Famous Holdings has been entered into at this time".

The company also said the proposed sale of Freight Management Holdings is subject to shareholders’ approval at an extraordinary general meeting that will be held in February.