Ang Moh talent’s investment decision causes massive write-offs in SingPost

SingPost released its full-year results ended 31 March 2017 yesterday (12 May).

It was announced that its net profit had dropped a whopping 87% from the previous FY’s $249 million to $33 million. This is mainly due to impairment charges (i.e, write offs) of $185.0 million coming from its US-based subsidiary TradeGlobal.

Impairment is an accounting principle that describes a permanent reduction in the value of a company’s asset. When testing for impairment, the total profit, cash flow or other benefit that’s expected to be generated by a specific asset is periodically compared with that same assets book value. If it’s found that the book value of the asset exceeds the cash flow or benefit of the asset, the difference between the two is written off and the value of the asset declines on the company’s balance sheet.

Chairman of SingPost said, “It is unfortunate that such a significant impairment to the TradeGlobal acquisition has to be made so soon after the transaction. A turnaround plan is being executed with the objective of recovering as much value as possible for shareholders.”

Apparently, TradeGlobal has significantly under-performed the business case which supported the investment decision into the US company 2 years ago in 2015. Instead of a projected profit of $9.4 million for the closing FY, it incurred a significant loss of $25.8 million.

Given the significant impairment of TradeGlobal, SingPost has formed an independent committee to conduct a thorough review of the circumstances surrounding SingPost’s consideration and approval of the TradeGlobal acquisition.

The committee has sought legal counsel to assist in reviewing the TradeGlobal acquisition. It will assess the adequacy of the financial and commercial due diligence performed in relation to the acquisition.

SingPost said it will seek legal advice on appropriate actions, if any, to be taken arising from the findings of the committee. The review is expected to be completed before Jul this year.

SingPost acquires TradeGlobal for $234 million

The US-based TradeGlobal was acquired by SingPost in Oct 2015 for $234 million.

TradeGlobal is a e-commerce provider for fashion, beauty, cosmetic and lifestyle products. Then SingPost CEO Wolfgang Baier said that the acquisition will turn SingPost into a global e-commerce player. “It is connecting the dots to become a digital company. We are a global player,” he told the media.

In another interview with Nikkei Asian Review, he said entering the US will allow SingPost to “cover two-thirds of the global e-commerce market” and position the company as “one of the global leaders in e-commerce logistics.”

However, barely 2 months after he announced the acquisition of TradeGlobal, Baier tendered his resignation from SingPost abruptly in Dec 2015. Several months later, it was announced that he had joined fragrance and cosmetic distributor Luxasia as its new CEO.

Luxasia said Baier’s appointment will strengthens its capabilities to reinforce its position as Asia’s trusted beauty brand.

Baier cashes out

And 5 months after he announced quitting from SingPost, it was reported that Baier sold off some 2.5 million SingPost shares in the market for about $4 million. After selling off, it was calculated he still held some 1.2 million shares at the time.

Baier was initially a management counsultant engaged by SingPost to review SingPost’s operations. But somehow, he ended up becoming SingPost CEO in 2011.

SIAS questions SingPost

It is interesting to note that with regard to the TradeGlobal acquisition and resignation of Baier, the Securities Investors Association of Singapore (SIAS) decided to question SingPost officials in a meeting between SIAS and SingPost in Jan last year.

SIAS President & CEO David Gerald asked, “The Trade Global deal, we believe, is SingPost biggest acquisition in the US. The acquisition was completed in a month. What due diligence was conducted?”

“With regards to Dr Baier’s exit, did he leave on his own accord or was he asked to leave? Did it have anything to do with the Trade Global deal? Did he express his concerns regarding this acquisition?”

“We also note the sudden removal of Ms Jocelyn Ng as Company Secretary. Did she also raise issues about the Trade Global deal?”

The SingPost Chairman was reported to have left the meeting assuring SIAS that SingPost would address each and every question posed “in due course”.

SIAS had called the meeting to relay its “serious concerns of SingPost shareholders and stakeholders”.

*Facebook post by We want Minister Grace Fu to resign.

 

 

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30 Responses to “Ang Moh talent’s investment decision causes massive write-offs in SingPost”

  • RDB:

    PAP’s ex-civil servants & ex-SAF general are no match for a Angmoh with real world market experience. And so their chairman etc simply laid back without watchful eyes by the way he left the meeting like a stung stunt chap?

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  • rukidding:

    Is this what PAP’s called & described them as….. “Foreign talent” ?

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  • opposition dude:

    Seems like Singpost is also sleeping on the job. Just anyhow employ ang moh for a CEO position only to have him leave soon after.

    And now this massive writedown from a single entity. But not to worry, SIngpost is very well protected so nothing will come out of this investigation.

    After all, if SMRT had a COI on the 2 massive breakdowns and escaped with nary a scratch why would anything happen to Singpost? And not to forget about the 2 technicians deaths, all SMRT paid for was a fine and case closed.

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  • Gone with the wind:

    No accountability ?
    Just like ho jix n gic.
    Lost billions. No problem.just fleece the poor daft peasants more n more , huh?!

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  • LIONS:

    DAFT AS DAFT CAN BE ARE THE SCHOLARS/GENERALS/MINISTERS/PERM SECS.

    they rid off REAL SG TALENTS from as long as 20 years ago n recklessly replaced us with ANG MOHS TUA KEE,INDIAN TALK BIG N PEENOISE NO BRAINERS ,all who contributed NEGATIVELY as proven by this ONE FROM SING POST N THE GENERAL TRENDS IN NATIONAL PRODUCTIVITY.

    iF YOU REPLACE US WITH more prodcutive n smarter WORKERS,we got nothing to say,but, you are replacing us with HOPELESS KIND OF WORKERS N MANAGERS that HELP IN SCREWING SG further down the chutes,i think you,the GAHMEN, ought to be replaced yourselves,am i right to say?

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  • BuyMeBakKutTeh:

    The 70% dun know dun care at all!

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  • Bapak:

    Confirmed this country is falling.

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  • Concerned:

    Amazing that the SingPost chair was not able to answer
    basic questions about his organisation’s major purchase,
    one that cost millions. Does this mean that he is unaware
    of what his organisation is doing?

    And 18 months later, “due course” has not happened, and
    SIAS appears to be Still waiting for answers to its questions?
    The SingPost chair is Still ignorant? (The fellow is ex-army
    isn’t he?) Or are the answers too embarrassing to give?

    As for getting on the world circuit of e-commerce, what a joke.
    SingPost takes 4 days to deliver post dropped into a box here
    on a Friday evening to an address in a little red dot.
    How long would it take to deliver if this place was the size
    of New York, or deliver elsewhere in the world?

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  • flabbergasted:

    Simple lah, just increase postage rates lah! PAP very good at screwing money from dafts.

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  • Rabble-rouser:

    What’s SG$234 million investment with a SG$185 million write-down – CHUMP CHANGE!
    GIC (those Generally Incompetent Clowns) lost a whopping US$4.0 billion (SG$5.6 Bn) selling a partial stake in UBS alone on Monday 15/05/2017.
    Link: http://www.reuters.com/article/ubs-gic-idUSL8N1IH6EE
    And how come TRE editors/contributors don’t even post something on this?

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  • oxygen:

    @ Rabble-rouser

    WHY YOU JUMPED Q to post this hard truth comment? I was about to give my “full and frank” views a moment before I read yours!

    Rabble-rouser: What’s SG$234 million investment with a SG$185 million write-down – CHUMP CHANGE!
    GIC (those Generally Incompetent Clowns) lost a whopping US$4.0 billion (SG$5.6 Bn) selling a partial stake in UBS alone on Monday 15/05/2017.
    Link: http://www.reuters.com/article/ubs-gic-idUSL8N1IH6EE
    And how come TRE editors/contributors don’t even post something on this?

    PAPpys blue-eye boys/gals lost our money measured in dimensions of billions and get their “performance bonuses” year after year – as long as they DON’T SPEAK to political incorrectness in the social media or public spaces.

    Meantime, the daft 70% are TOO STUPID TO EVEN DISCOVER THEY ARE STUPID keep voting con artistes back in – they are all waiting for their property price to climb higher in that ASSET ENHANCEMENT POLITICS scam sucking up their retirement CPF savings.

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  • C'est la vie:

    *****
    GIC loss of US$4b via UBS, and now SingPost ……. world events and economies have conspired against S’pore here and I’m certain, there’s plenty more “dosh” for the SG “experts” to turn it all around.

    Thank god for the miracle/saviour, that is PAP and their “appointments” !!!
    **
    *****

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  • Steal My Lunch:

    Those in the true private sector will know very well how easy to get rich working with these zero experience, wimpy, paper gongkias.
    These can be a pain to work with, given their inexperience and nickpicking on unimportant matters, but outcome is still very rewarding and rich.
    How is this different from the many other failed ventures by PAP crony companies?

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  • Money Mine, Bills Yours:

    C'est la vie:
    *****
    GIC loss of US$4b via UBS, and now SingPost ……. world events and economies have conspired against S’pore here and I’m certain, there’s plenty more “dosh” for the SG “experts” to turn it all around.

    Thank god for the miracle/saviour, that is PAP and their “appointments” !!!
    **
    *****

    No worries, dafts will pay for it, yet again. It’s an honest mistake, let’s move on.

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  • Deconstruction:

    Wow He very clever to earn money! I am sure he went around Sinkiland fucking every night!

    Thanks to Singpost….under Temasek? Or sold off?

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  • Rabble-rouser:

    @ Oxygen:
    Sorry Mate! I was KEEN to see TRE post an article on the UBS whopping SG$5.6 BILLION LOSS by our Generally Incompetent Clowns (GIC) but like the Baby Milk Formula ‘Slow Train’[10 long years in the making to bring out the issue of 3x the price for a tin of S'pore Baby Milk Formula vs Aussie/NZ prices] – TRE IS ALSO TAKING AGES TO BRING OUT THIS ISSUE!
    Dunno what kind of investment calibre guys they have on board at GIC but I think either of us could do much better than them & probably for less money, too.
    Methinks there is a CULTURE FOR REWARDING FAILURE at GIC & also at Tummy-Sick (Temasek). And when both key decision-makers sleep together on the same bed, it’s a catastrophe! The History books shows how bad it is when there’s little to no accountability for inept investing performance!
    And PAP ministers pay themselves millions in salary to oversee such spectacular incompetence from S’pore SWFs – in truth, this would have warrant a Govt Inquiry in most democratic nations; heads would have rolled for this debacle. Even North Korean despot Kim Jong-Un would have put those incompetent clowns responsible for the UBS debacle in front of his beloved Anti-Tank missile brigade & shouted,’Fire!’
    Merrill Lynch (morph’ing into Bank of America Post-2008 GFC); Barclays Bank, UBS, Citicorp & Akan datang, Stanchart (the infamous ‘Chow-Tar Goon Hang’ Hokkien parlance for Burnt-out Bank).
    It’s quite easy to see the flawed & failed Investment Strategy for S’pore Inc. The era for Global Banks were already over even before S’pore SWF began investing in them. Their risk vs return profile had shifted toward high risk as bank began indulging in proprietary trading to game top management bonuses & share options. Barings Brothers in 1994 had already signal this unacceptable practice of using bank’s shareholder’s equity to speculate & arbitrage on leveraged derivatives such as futures. The reported news on the media then were Fake News as Nick Leeson (‘Angmoh Gongkia’) took the fall for Baring’s top management in the UK. And this happened on S’pore own backyard & under PAP’s watch. Should have rung a warning bell then!
    I was reading up on Bernie Madoff the other day. Bernie himself claimed to be the REAL DEAL on investments circa 1980s to 1990s. But as markets tapered off from the early 2000s into single digit returns – Bernie was swamped with
    new money looking for his magic touch ie. double ‘D’ returns ie. 15%. And he claimed that was the beginning for his PONZI SCHEME.

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  • New Egg Yoke:

    Money Mine, Bills Yours: No worries, dafts will pay for it, yet again. It’s an honest mistake, let’s move on.

    These retributions are just anothern of many to follow, just like the recent FIRE at T2. Once in 50 years dinosaur events happening every day and week for 50 years. Stinkyland going extinct soon just like the dinosaurs soon-GREAT!!!

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  • Gone with the wind:

    flabbergasted:
    Simple lah, just increase postage rates lah! PAP very good at screwing money from dafts.

    Yes akan datang , friend…everything oso gone up..just a matter of time.

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  • Rabble-rouser:

    [Cont'd] The unbelievable aspect from Bernie Madoff’s PONZI SCHEME was that he actually believed that he could pay off all his clients when a BIG PAYDAY opportunity would arise in the financial markets. Meanwhile he carried on his PONZI SCHEME using new investment money coming in to pay off existing clients 15% return while he parked the rest in Treasuries earning 2%.
    But what he didn’t realized was that he began to grow complacent & greedy when money was being thrown at him looking for his ‘fabled’ 15% to 18% return when many in the market could only achieved low single digit returns. He began to cultivate a ‘Rich & Famous’ lifestyle with personal planes, luxury boats & vacation homes. What he didn’t realized was that he grew extremely comfortable with his PONZI SCHEME never realizing that it was UNSUSTAINABLE. When the 2008 GFC struck, it was the beginning of the end for Bernie’s PONZI SCHEME. Bernie’s many clients began to demand their money back to settle other claims created by the GFC. And Bernie simply didn’t have that money – a portion was paid to clients to fund Bernie’s high performance return aura of 15%; some were used to fund Bernie’s high living expenses for himself & his family; & some could have even filtered out to offshore locations to prevent ‘clawback’ by investors’ claims.
    The story of Bernie Madoff has many parallels. It is up to you to read & understand the basic human fundamentals of greed, fear, complacency, establishing comfort zones & the fallacy of hindsight thinking.
    Link: http://nymag.com/news/features/berniemadoff-2011-3/

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  • PAP d problem, NOT Solution:

    — Ang Moh Talent. Is it Ang Moh Board also? — Heng ah? Not ang moh board, or is it also ang moh board?

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  • PAP d problem, NOT Solution:

    Deconstruction:
    Wow He very clever to earn money! I am sure he went around Sinkiland fucking every night!

    Thanks to Singpost….under Temasek? Or sold off?

    REMINDS me of the TALENT who was IN CHARGE of the $$ SUPER EXPENSIVE $$ so bloooody complicated football field’s GRASS AND grass laying !!!!! Remember this chap – a part timer? Or was also a part-timer for ANOTHER company, plucking PAP’s backsides (citizens tax money ALL GONE) while also a consultant for us?

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  • oxygen:

    @ Rabble-rouser

    YES, MADOFF CAREER was a tale of lies, secrecy and conflict of interest AFTER HIS INITIAL SUCCESS – and then next comes the collapse of his own CORRUPTION.

    PAPpys are of the same construct – the end will come abruptly when reality conquers all delusions and deceitful fabrications – it may not be long from here.

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  • ahlong meets mingyang:

    maybe luxasia makes a cut in the purchase of tradeglobal?

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  • Wonderfools:

    Alamak, C.P.F. withdrawal age to be raised again?

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  • Yew insist no check & balance:

    While we can Blame this Ang mor, we have also not blamed the bigger problem which is us.

    How so? SINKIES naturally ask.

    Well, yew voted and insisted to have zero check and balance KNOWINGLY.

    So, dun just blame this Ang more. Yew are the bigger problem.

    Yew insist to have no check no balance. It’s yew!

    Mod: While some vulgarities have slipped through the system, as much as possible would be removed. Readers are reminded to refrain from derogatory / racist terms, and vulgarities, to help keep this site clean and credible. Thank you.

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  • Bonkers:

    Are they qualified? Too much free money for them to manage or mismanage and abuse of their authority in running dry the golden pot. There are aplenty cases happening around the world, perhaps just look into local uni with the maxi foreign students and lecturers is good enough to reveal surprises beyond believe. Never believe in ranking, results are inflated, money can make wonders.

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  • Where got vulgarity?:

    Yew insist no check & balance:
    While we can Blame this Ang mor, we have also not blamed the bigger problem which is us.

    How so? SINKIES naturally ask.

    Well, yew voted and insisted to have zero check and balance KNOWINGLY.

    So, dun just blame this Ang more. Yew are the bigger problem.

    Yew insist to have no check no balance. It’s yew!

    Mod: While some vulgarities have slipped through the system, as much as possible would be removed. Readers are reminded to refrain from derogatory / racist terms, and vulgarities, to help keep this site clean and credible. Thank you.

    Hello Mod
    Where is the vulgarity?
    Perceived or otherwise.

    Mod: was removed by me before approving the posting. Cheers.

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  • Brilliant:

    It looks like a brilliant move. Someone got checked mate. Someone walked away from this mess a very rich man.

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  • SinghPost:

    If u call SingPost, 99% the customer service officer is an Indian.
    They cannot get things done, I merely diverted my parcel for collection at another branch. And it got lost.
    Not only that, they did not have the decency to admit that it’s lost and wasted so much of my time giving excuses.

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  • bbb:

    oxygen:
    @ Rabble-rouser

    WHY YOU JUMPED Q to post this hard truth comment? I was about to give my “full and frank” views a moment before I read yours!

    PAPpys blue-eye boys/gals lost our money measured in dimensions of billions and get their “performance bonuses” year after year – as long as they DON’T SPEAK to political incorrectness in the social media or public spaces.

    Meantime, the daft 70% are TOO STUPID TO EVEN DISCOVER THEY ARE STUPID keep voting con artistes back in – they are all waiting for their property price to climb higher in that ASSET ENHANCEMENT POLITICS scam sucking up their retirement CPF savings.

    Addiction to kissing ang moh ass has got a high price tag.

    GD Star Rating
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