Singapore Post

The special dividend is a return of capital and we have to value the residual stub based on the ex-dividend share price. The market's recent disinterest is probably because the stub is ex-growth while the implied stub valuation is suggesting some form of growth.

There is the domestic e-commerce business but most of the e-commerce platform is already insourcing their fulfillment while within Cainiao, Singpost is just one of the many vendors and probably not the most competitive too.

Possible capital allocation risk too if the group decides to pursue other growth avenues.

Singpost is the last place I expect corporate governance issues at the senior level but firing the Group CEO, Group CFO, CEO Interanational, managers is a major move.

What is worrying beyond the firings is there is absolutely no information on the nature of these "serious breaches of the company’s code of conduct" by the senior managers that necessitate a police report. It also sounds like the mgmt team tried to cover it up and they were fired for that.

Edit: relevant SGX notice, with more information. The three managers were fired because they "performing/approving manual updates of the “DF” (delivery failure) status code for parcels which the Company had agreed to deliver, even though no delivery attempt had been made and without supporting documents."

https://links.sgx.com/FileOpen/SGXAnnWBR...eID=828572

Quote:SINGAPORE – Singapore Post (SingPost) has terminated the employment of three of its senior management staff after it concluded investigations over a whistleblower’s report that it received earlier in 2024.

The employment of group chief executive Vincent Phang, group chief financial officer Vincent Yik, and the chief executive of the company’s international business unit Li Yu were terminated with immediate effect on Dec 21.

Mr Phang was also requested to resign as a director of SingPost and all its related companies in accordance with his contractual obligations, the company said in a bourse filing on Dec 22.

SingPost will announce the appointment of its new group CEO “in due course”, while Mr Isaac Mah, current CFO of its Australian business, the FMH Group, will be appointed as the new group CFO.

Meanwhile, an acting CEO will be appointed to lead the IBU pending a board review of the unit – no appointment of a new international business CEO is being proposed at this stage.

Board chairman Simon Israel will provide increased guidance to and exercise greater oversight of the senior management leadership team.

SingPost said it received a whistleblowing report relating to its non-regulated international e-commerce logistics parcels business earlier this year.

Investigations by the company found that three managers with various operations responsibilities in the operations of the international business unit were directly involved in the matter – they had “committed serious breaches of the company’s code of conduct” by making manual updates that were not in accordance with the company’s standard processes.

The employment of these three individuals was terminated earlier, and the company has also made a police report against them.

The company also engaged an external law firm to review management’s conduct in the matter.

It found that the group CEO, group CFO and the CEO of the international business were “grossly negligent” in the handling of the internal investigations, and had omitted to consider material facts that compromised their decision-making and/or failed to perform their duties responsibly and reliably.

The trio were found to have failed to exercise due diligence and breached their duties to the company.

Given the seriousness of these lapses and findings, the board said it has “lost confidence and trust” in the judgment of the three, and in their ability to perform their duties towards promoting and protecting the interests of the company.

Mr Phang and Mr Yik have each, through their solicitors, indicated that they will vigorously contest the termination of his employment, both on merits and on the grounds of procedural unfairness.

SingPost said postal services in Singapore will not be affected as each of its businesses has its own leadership team, and will continue to operate normally.

Meanwhile, SingPost has informed the customer about the whistleblowing report and the findings. They have agreed on a settlement under which, among others, the company would pay a settlement sum in lieu of the penalties.

The company does not expect the settlement to have a material impact on its net tangible assets or earnings per share for the current financial year.

Its business with the customer has also not been materially affected – the contract has since been renewed following the settlement.

Mr Phang was appointed group CEO on Sept 1, 2021. He joined SingPost in 2019, and had been its CEO for the postal services segment and Singapore.

Prior to joining SingPost, Mr Phang was the group CEO of ST Logistics and executive vice-president of Toll Global Logistics Singapore.

Mr Yik joined SingPost in December 2021. Before that, he had held key executive roles at various companies, including CFO at OUE Lippo Healthcare and CFO of Far East Orchard.

Mr Li joined SingPost on Sept 12, 2022, from United Parcel Service, where he was most recently responsible for its Asia-Pacific global logistics and distribution.

Shares of SingPost closed at 56 cents on Dec 20, before the announcement. THE BUSINESS TIMES

https://www.straitstimes.com/business/si...ing-report

I thought it was pretty common such things happened. I was informed that my parcel will be delivered (forgot which logistic co) on a day but near the end of the day, it was updated delivery failed as owner was not at home. I was at home the entire day. I sent an email to the logistic co to enquire but received no reply from them. So i just let it be.

Sometimes its not the logistic co at fault but the customs clearance took more time to clear the goods/parcel.

SingPost @ 50cents

SingTel Group COO step down for a new professional opportunity.
https://links.sgx.com/1.0.0/corporate-an...796b4e5f28

Thanks all valuebuddies for chipping in with ample warning. 

Shall we visit Singpost centre?


Gratitude!

(22-12-2024, 09:50 PM)LionFlyer Wrote: Singpost is the last place I expect corporate governance issues at the senior level but firing the Group CEO, Group CFO, CEO Interanational, managers is a major move.

Hi LionFlyer,

Singpost was featured in Volume6 of Prof Mak's CG case studies on Oct2016:
https://www.cpaaustralia.com.au/-/media/...6c08e956f9

You can also read the number of times that Prof Mak wrote an article on it:
https://governanceforstakeholders.com/pa...s=singpost

So I am not sure where your faith as it been "the last place to expect CG issues" comes from. Maybe it is because you may have thought that they should have learnt a lesson from the entire saga? But that lesson was mostly paid by shareholders and maybe shareholders should have been the ones to learn the lesson.

As an OPMI and mostly unfamiliar with how Singpost's culture/practices really is, sometimes it might be easier to assume that "no change or cosmetic changes is the default behavior". And when a cockroach is found in the closet, it is safer to assume his relatives are nearby.

SingPost @ 52 cents

Let me just put down my thought.

The trigger point for me to vest in SingPost was actually the execution of diverting Australia business.  As simple as that. 

Allow me to elaborate a bit.

There are a lot of initiatives aka transformation stories and most of them is not executed.  I was not even aware of SingPost value creation initiatives until last week news that Australia business was sold.

If this is completed, portion of the cash would be earmarked as special dividend.  

So simple.

---

With the latest news coming out from whistle blowing, the details looks interesting to read but what's key to my decision to hold/sell/buy more would hitch on whether the other planned initiatives will continue to execute or put on hold (indefinitely)?

I don't think anyone (except may be the Board) will have any answer.

The question is whether without top management, will the Board accelerate the pace of value creation for shareholders?



Gratitude!

SingPost seems to have a deeper problem. Now, one of board member also started to resign.

https://links.sgx.com/1.0.0/corporate-an...796b4e5f28

(24-12-2024, 01:34 PM)gutman Wrote: SingPost seems to have a deeper problem. Now, one of board member also started to resign.

https://links.sgx.com/1.0.0/corporate-an...796b4e5f28

She resigned from Singtel and the Board of SingPost. Could be because she is taking a executive role in SingPost. Makes sense because she likely have a good view on what's going on and can be a bridge to the BoD.

(24-12-2024, 10:49 AM)weijian Wrote:

(22-12-2024, 09:50 PM)LionFlyer Wrote: Singpost is the last place I expect corporate governance issues at the senior level but firing the Group CEO, Group CFO, CEO Interanational, managers is a major move.

Hi LionFlyer,

Singpost was featured in Volume6 of Prof Mak's CG case studies on Oct2016:
https://www.cpaaustralia.com.au/-/media/...6c08e956f9

You can also read the number of times that Prof Mak wrote an article on it:
https://governanceforstakeholders.com/pa...s=singpost

So I am not sure where your faith as it been "the last place to expect CG issues" comes from. Maybe it is because you may have thought that they should have learnt a lesson from the entire saga? But that lesson was mostly paid by shareholders and maybe shareholders should have been the ones to learn the lesson.

As an OPMI and mostly unfamiliar with how Singpost's culture/practices really is, sometimes it might be easier to assume that "no change or cosmetic changes is the default behavior". And when a cockroach is found in the closet, it is safer to assume his relatives are nearby.

Thanks. Yes, they had their fair share of challenges a few years back and it has been put to bed. Sometimes it is really hard to tell. I wonder whether the BoD holds some of that responsibility.

(not vested)

Singtel announced 1 month ago on 21 Nov 2024.
"Ms Lim Cheng Cheng will be stepping down from her role as Group Chief Corporate Officer as she
leaves the company for a new professional opportunity."
I don't know where she went, but base on the timing I don't think it is Singpost.
She was nominated by Singtel as the substantial shareholder to Singpost board. So naturally she will not remain on Singpost board after leaving Singtel.
I am just saying her leaving Singpost board is not that abrupt.