SingPost – BT
SingPost to acquire Novation for US$9.8m
SINGAPORE Post Ltd yesterday announced that it is acquiring Hong Kong-based Novation Solutions Ltd for US$9.8 million (approximately S$12.7 million), through its wholly owned subsidiary, DataPost Pte Ltd.
DataPost’s purchase of Secured Financial Services Ltd’s entire 100 per cent stake in Novation will be satisfied wholly in cash upon completion, and is to be funded from SingPost’s internal resources.
The completion date of the proposed acquisition is expected to take place on or around Feb 29, upon which Novation will become a wholly owned subsidiary of SingPost.
Novation is a full-service security printing, document management, and transaction mail provider in Hong Kong. Its core services include security and commercial printing and services like variable-data print and electronic direct marketing services. Novation is also present in China.
Wolfgang Baier, SingPost’s group chief executive officer, said that the acquisition is in line with the company’s strategy to grow its digital and hybrid mail business locally and in the region.
‘In transforming SingPost, we have identified digital services as one of our five key business pillars. With this acquisition, we will leverage our combined expertise for expansion into document management and digital printing,’ said Dr Baier, adding that Novation will help to expand SingPost’s footprint in Hong Kong.
As at Dec 31, 2010, the net tangible asset value of Novation was HK$94.3 million (about S$15.7 million). SingPost said that Novation is profitable, and that the proposed acquisition will be on a debt-free basis since Novation has not incurred any debt according to its recent consolidated accounts. The acquisition will not have a material impact on SingPost’s earnings.
SingPost has been expanding its digital and hybrid mail business in the region over the years. Just last year, it acquired a 20.82 per cent stake in Efficient, a Malaysian company which has its core business in business process outsourcing.
SingPost’s shares fell 1.5 cents yesterday to close trading at 95.5 cents per share.