Singpost

Singpost: Company has bought a stake in Famous Holdings (FH), a freight-forwarding company, for $60m. Both companies have also agreed on an option to transact the remaining 37.5 per cent stake at the end of 2015, at a price to be determined based on an agreed formula. Singpost stated that its part of their strategy to grow the logistics business, and they are strengthening their capabilities to provide fully integrated logistics solutions to its customers. FH's freight-forwarding capabilities complement Singpost's e-commerce logistics capabilities in regional fulfilment and warehousing, as well as the Company's postal & parcel delivery networks. Street estimates TP of $1.13, a downside of 3.4% with the Counter currently trading at $1.17 and 16.5x P/E.