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<p><strong><a href="http://www.dealstreetasia.com/?s=Singpost" target="_blank">SingPost</a></strong> and <strong><a href="http://www.dealstreetasia.com/?s=alibaba" target="_blank">Alibaba Group</a></strong> are expanding their partnership, the companies announced Wednesday.</p></article>

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<p><strong><a href="http://www.dealstreetasia.com/?s=Singpost" target="_blank">SingPost</a></strong> and <strong><a href="http://www.dealstreetasia.com/?s=alibaba" target="_blank">Alibaba Group</a></strong> are expanding their partnership, the companies announced Wednesday.</p>
<p>The deal will see Alibaba inject $67.85 million (S$92 million) into Singpost unit <a href="http://www.dealstreetasia.com/?s=quantium+solution" target="_blank"><strong>Quantium Solutions International (QSI)</strong></a>. This increases Alibaba&#8217;s equity stake in QSI to 34 per cent, with SingPost holding the remaining 66 per cent. Alibaba will also buy 107,553,907 new SingPost shares equivalent to 5 percent stake in the postal group for S$187.1 million.</p>
<p>On completion of both these transactions, Alibaba’s deemed interest on a fully diluted basis in SingPost will rise from 10.23% to 14.51%</p>
<p>The two firms have initiated a series of action aimed at improving efficiency and integration in e-commerce logistics, as well as deepening their business relationship. The latest investment signals an increased commitment to further corporate collaboration, as the two firms position themselves as market leaders in the Asia Pacific (APAC) e-commerce space.</p>
<p>QSI is currently a subsidiary of SingPost that provides end-to-end e-commerce logistics solutions, warehousing and fulfilment services across the Asia Pacific region, with a network spanning more than 10 countries, as well as covering other locations in the APAC region.</p>
<p>This new investment will see QSI reorganise its business as a joint venture vehicle of SingPost and Alibaba Group, allowing QSI to ramp up its development of e-commerce logistics infrastructure and services, encompassing e-commerce warehousing, last-mile delivery and other end-to-end e-commerce solutions.</p>
<p>According to Daniel Zhang, CEO of Alibaba Group, &#8220;This additional investment into SingPost and establishment of a joint venture signify our commitment in expanding our global logistics footprint, which in turn will help Chinese businesses sell, and global brands deliver more easily around the world.”</p>
<p>SingPost and Alibaba intend to share their respective knowledge, leveraging on each other’s competencies to scale across the e-commerce logistics value chain.</p>
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<p>The latest initiatives by SingPost is part of developments in the face of market changes like a global decline in mail revenue, e-substitution and lifestyle changes among consumers. It is a win-win situation for both of us because we share similar goals and have a natural fit between our operations across Asia. On behalf of my fellow directors, I welcome Alibaba as one of our partners on the next phase of the journey.”</p>
<p><a href="https://www.google.com.sg/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=4&amp;cad=rja&amp;uact=8&amp;ved=0CDMQFjAD&amp;url=http%3A%2F%2Fwww.bloomberg.com%2Fresearch%2Fstocks%2Fpeople%2Fperson.asp%3FpersonId%3D118882984%26ticker%3DSPOST%3ASP&amp;ei=KKWcVf2bIsqOuATP64P4DA&amp;usg=AFQjCNFTaJ8ZrdfFJNapW7A9astUX4hFDQ&amp;sig2=tSfihMaiQP_QS7aC4gMnkQ&amp;bvm=bv.96952980,d.c2E" target="_blank"><strong>Dr. Wolfgang Baier</strong></a>, Group CEO of SingPost, said, “We are now taking the next step by building a regional e-commerce logistics platform and infrastructure for e- commerce players across Asia Pacific based on Quantium Solutions – our e-commerce logistics subsidiary. Alibaba started as our customer and then last year became our shareholder and business partner.</p>
<p>Baier added, &#8220;Today with the significant growth in e-commerce ahead, both of us are convinced of the long term value of working together in a win-win partnership for e-commerce businesses in Asia Pacific.”</p>
<p>SingPost closed unchanged at $1.89 yesterday.</p>
<p><em><strong>Related Story: <span style="color: #ff0000;"><a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/singpost-acquires-30-of-hubbed-for-3-32m-7974/">Singpost acquires 30% in Australian e-commerce Hubbed for $3.32m</a></span></strong></em></p>
<p><span style="color: #ff0000;"><em><strong><a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/singpost-is-first-logistics-partner-of-alibaba-merchant-delivery-scheme-6664/">SingPost is first logistics partner of Alibaba Merchant Delivery Scheme</a></strong></em></span></p>
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Alibaba Group has invested $67.85 million in Quantum Solutions and invested an additional $138.6 million in SingPost.

Alibaba to invest S$187.1m in SingPost, to raise stake to 14.51%

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Alibaba to invest S$187.1m in SingPost, to raise stake to 14.51%

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