Singapore Post (SingPost) has announced its decision to sell its Australian business to private equity firm Pacific Equity Partners, with the deal valued at A$1 billion (approximately S$870 million). This divestment follows a strategic review launched earlier this year, aimed at exploring options to increase business value and maximise returns for shareholders.

The sale will provide SingPost with A$775.9 million in cash proceeds and result in a gain of approximately S$312.1 million, subject to final adjustments upon completion of the transaction.

As part of its post-sale strategy, SingPost indicated that it may consider issuing a special dividend, following the repayment of outstanding debts and in consideration of its future funding needs.

The buyer, Pacific Equity Partners, is a private equity fund based in Australia.