Singapore Post Ltd : Proposed Acquisition of the Entire 100% stake in Novation Solutions Limited

ACQUISITIONS AND DISPOSALS

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ACQUISITIONS AND DISPOSALS :: NON-MANDATORY DISCLOSURE :: PROPOSED ACQUISITION OF THE ENTIRE

100 PER CENT. STAKE IN NOVATION SOLUTIONS LIMITED

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Name of Announcer * SINGAPORE POST LIMITED Company Registration No. 199201623M Announcement submitted on behalf of Announcement is submitted with respect to *

SINGAPORE POST LIMITED

SINGAPORE POST LIMITED

Announcement is submitted by * Genevieve Tan McCully (Mrs) Designation * Company Secretary Date & Time of Broadcast 20-Jan-2012 17:07:05 Announcement No. 00037

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Announcement Title * Proposed Acquisition of the entire 100 per cent. stake in Novation Solutions Limited Description Attachments

SGXNETAnn-Novation.pdf

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http://info.sgx.com/webcorannc.nsf/AnnouncementTodayByCompanyNameAndCateg...

20/01/2012

SINGAPORE POST LIMITED (Incorporated in the Republic of Singapore) (Company Registration Number: 199201623M) PROPOSED ACQUISITION OF THE ENTIRE 100 PER CENT. STAKE IN NOVATION SOLUTIONS LIMITED

The Board of Directors of Singapore Post Limited (the "Company") wishes to announce that the Company has on 20 January 2012 through its wholly-owned subsidiary, DataPost Pte Ltd ("DataPost"), entered into a share purchase agreement (the "Agreement") with Secured Financial Services Limited (the "Seller"), pursuant to which the Seller has agreed to sell and DataPost has agreed to purchase the entire 100 per cent. stake in Novation Solutions Limited ("Novation") (the "Proposed Acquisition").
Novation, a company incorporated in Hong Kong, is a full-service security printing and transaction mail provider. Its core services include security and commercial printing and print-related services which comprises variable-data print and electronic direct marketing services.
The consideration for the Proposed Acquisition is US$9,800,000 (equivalent to approximately S$12,740,000, based on the exchange rate of US$1 to S$1.3) (the "Acquisition Consideration") and was arrived at after arm's length negotiations on a willing buyer, willing seller basis, taking into consideration, inter alia, various factors such as the existing assets, financial position and business prospects of Novation. The Acquisition Consideration will be satisfied wholly in cash upon completion under the Agreement, and this will be funded from the Company's internal resources.
The completion date of the Proposed Acquisition is expected to take place on or around 29
February 2012 (or such other date as may be agreed in writing between the Seller and the
Company). Upon completion of the Proposed Acquisition, Novation will become a wholly-owned subsidiary of the Company.
Based on the audited consolidated accounts of Novation as at 31 December 2010, the net tangible asset value of Novation was HK$ 94,334,000 (equivalent to approximately S$ 15,725,000, based on the exchange rate of HK$1 : S$0.1667). The Proposed Acquisition will be on a debt-free basis as Novation has not incurred any debt according to its audited consolidated accounts as at 31
December 2010 and its unaudited consolidated accounts as at 31 July 2011.
None of the directors of the Company has any interest, direct or indirect, in the Proposed
Acquisition.

BY ORDER OF THE BOARD

Genevieve Tan McCully (Mrs) Company Secretary
20 January 2012