Singapore Post Limited (SGX:S08) has appointed Merrill Lynch Markets (Australia) Pty Limited as a financial adviser to its board. The group said on June 21 that the adviser will work with its board to "formulate optionalities for the group's Australia businesses specifically". The group plans to achieve scale in Australia by exploring near-term partnerships that can contribute to growth.

It said that this will provide equity to deleverage its acquisition debt and establish an independent valuation benchmark. SingPost also intends to continue seeking mergers and acquisitions and future liquidity options. The national postal service provider had reported on March 19 its completion of a strategic review of its portfolio and identified five strategic thrusts that it plans to undertake in the next three years.

A subsidiary of SingPost previously acquired Border Express, a pallet and parcel distribution operator in Australia, for a maximum purchase consideration of AUD 210 million (SGD 189 million). With the acquisition, the group planned to strengthen its position as one of the top five logistics players in Australia, by revenue. Its other strategic thrusts include reorganising the group into three business units of Singapore, Australia and International, as well as transforming its urban logistics and deliveries business in Singapore.

SingPost also identified a list of assets and businesses that are non-core to its strategy, which can be monetised as part of the group's capital recycling.