Dubai-based Aramex has announced that it is to sell its 60 percent stake in a joint venture with Australia Post.
The sale of the stake in Aramex Global Solutions (AGS) to Australia Post is valued at $20 million, the logistics firm said in a statement.
It said the decision to sell came as a mutually agreed transaction that will allow both organisations to execute their strategic growth in the booming global e-commerce industry.
In 2016, Aramex and Australia Post partnered to create AGS to serve as an e-commerce delivery platform, with a particular focus on connecting the Australian e-commerce market with sellers in Asia.
Aramex currently owns the majority of the joint venture, with a 60 percent stake and the remainder 40 percent is held by Australia Post.
Upon completion, the divestment will not have any impact on Aramex revenues since the JV was only accounted for on equity basis. However, it will incur a one-off write-off of $13 million for Aramex.
Bashar Obeid, CEO of Aramex said: “We have mutually agreed with our trusted partners, Australia Post, to sell to them our full 60 percent stake in AGS. The divestment will not affect our e-commerce growth strategy. The global e-commerce market continues to grow at a strong rate, transforming our industry and presenting huge opportunities for us to expand our business in our target markets.
"We will continue to tap into this growth by enhancing our last mile delivery solutions and further improving service levels through investments in technology and digitization.”For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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