Singapore Post shares touched a two-year high on Friday after regulators approved Alibaba Group Holding's stake increase in the company. China's largest e-commerce company will have a 14.4 percent stake in the postal delivery company.
Shares in SingPost rose as much as 6.9 percent to S$1.625, touching a 2-year high, following the news.
Alibaba, which had a 10.2 percent stake in SingPost, has now become the second largest shareholder in the company after Singtel. The Chinese giant first took a stake in SingPost in 2014.
Late on Thursday evening, SingPost said the Info-communications Media Development Authority gave the approval for stake raising by Alibaba.
SingPost also said Alibaba will invest S$86.2 million in Quantium Solutions International Pte (QSI), the postal company's logistics unit.
The investment in QSI will help the postal giant improve e-commerce logistics capabilities in Southeast Asia and Oceania.
"The completion of the QSI joint venture underscores the deepening relationship and commitment between both companies to build a leading eCommerce logistics platform together across the region. Both Alibaba and SingPost are confident in the long-term value of collaborating to serve the region's fast rising eCommerce logistics needs," Simon Israel, Chairman of SingPost, said.
SingPost said Alibaba's further investment of S$187.1m will be completed by February 2017.
