The settlement is not expected to have a material impact on the company’s net tangible assets or earnings per share for the current financial year
Singapore Post (SingPost) has settled long-drawn-out legal proceedings with a shares seller, with the terms behind the resolution of the disputes being confidential.
The national postal service provider said in a bourse filing on Monday (Jun 24) that it, together with subsidiaries SingPost Logistics Investments and Famous Holdings, had earlier in the day entered into a settlement agreement with Tan Ho Sung, also known as Taufiq Tan.
The disputes between the parties stemmed from a share-purchase agreement and shareholders’ agreement in relation to freight forwarder Famous Holdings and its subsidiaries, with arbitration proceedings started as far back as FY2018.
Specifically, the deals were over the remaining 37.5 per cent shares in Famous Holdings that Tan transferred to SingPost Logistics Investments, following the exercise of the put option for those shares.
The terms of the settlement are confidential, but SingPost said that there was no admission of liability.
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“The board of directors is of the view that the settlement of the disputes in accordance with the terms of the settlement agreement is in the best interests of the company. The settlement is not expected to have a material impact on the company’s net tangible assets or earnings per share for the current financial year,” SingPost said in the statement.
SingPost had in August said that it would pay Tan an additional S$1.7 million, or a total of S$61.7 million for the purchase of the remaining 37.5 per cent stake in Famous Holdings, as part of an arbitration award.
SingPost shares closed S$0.005 or 1.1 per cent lower at S$0.45 on Monday, before this settlement was announced.
