July 8, 2015 / 1:26 AM / in 2 years

Alibaba boosts Singapore Post stake, invest in e-commerce unit

SINGAPORE (Reuters) - 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.

The logo of the Alibaba Group is seen inside the company's headquarters in Hangzhou, Zhejiang province November 11, 2014. REUTERS/Aly Song

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.

Reporting by Saeed Azhar; Editing by Miral Fahmy

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