The sudden departure of Vincent Phang, group chief executive of Singapore Post, has sparked uncertainty about the company's long-term strategy and its ability to execute planned restructuring and growth initiatives.
The termination of the employment of Singapore Post’s group chief executive, Vincent Phang, could delay ongoing efforts to ensure the long-term commercial viability of the postal service business, given that he had been instrumental in leading its restructuring, some analysts said. They are uncertain of whether his departure will have any impact on SingPost’s new plans to focus on logistics for future growth and divest non-core assets to pare debt and return excess capital to shareholders.
Those plans also include the proposed sale of SingPost’s Australian freight management business to a private equity firm for A$776 million (S$656 million) in cash, which would substantially improve the company’s financial position and make way for a potential special dividend. Given that the Australian business is a major contributor to the company’s overall profits, the sale had also raised questions about SingPost’s long-term growth potential – doubts that Phang would have been well placed to address. SingPost had also been finalising an operating model with the Infocomm Media Development Authority that includes plans to transition away from post offices to alternative locations and channels where customers can interact with the postal system to send, receive or manage mail and parcels, among other things. Phang had announced SingPost’s three-year transformation plan in March. For the six months ended Sept 30, the company’s revenues rose by 20 per cent year on year to $992.4 million, while earnings increased 65.6 per cent to $22.2 million. With no further clarity on these plans, OCBC analyst Ada Lim warned in a Dec 23 report of greater corporate governance risks and uncertainty, and expects SingPost’s stock to be worth less than initially forecas
SINGAPORE POST CEO RESIGNATION LOGISTICS FINANCIAL PERFORMANCE
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