Mail and logistics firm Singapore Post (SingPost) said that its six-month sale process for its U.S. e-commerce businesses Jagged Peak and TradeGlobal has closed with "no acceptable offers".
SingPost said it had received eight expressions of interest for the units which resulted in two non-binding offers, which it found to be "commercially unfeasible".
The mainboard-listed firm said in a regulatory filing that it had appointed an investment bank as a financial adviser and reached out to potential buyers globally - a move resulting in 105 interested parties.
Following failed attempts by the boards of directors of the U.S. companies to seek additional liquidity both Jagged Peak and TradeGlobal have filed for voluntary petitions for relief under Chapter 11 of the U.S. bankruptcy code for the district of Nevada, SingPost said in its statement. "Under the supervision of the bankruptcy court, the U.S. subsidiaries intend to pursue the sale of all or substantially all of their assets," the filing added.
The acquisition proved to be costly and a mistake
SingPost said it is expecting to incur professional and administrative fees during the bankruptcy proceedings. It will also no longer include TradeGlobal and Jagged Peak in its financial reporting.
For the quarter ended June 30, 2019, the unaudited consolidated loss arising from the U.S. subsidiaries was around S$6.9 million.
SingPost bought majority stakes in TradeGlobal and Jagged Peak for about US$184 million in 2015.
Nol van Fenema