(Bloomberg) -- Even after a 6.2 percent surge in Singapore Post Ltd.'s share price on Friday on growth optimism, Alibaba Group Holding Ltd.'s stake in the company is still worth less than what it invested originally. China's biggest e-commerce company spent S$500 million ($379 million) in May 2014 and October 2016 to buy about 14 percent of Singapore's mail service in a bid to develop its logistics presence in Southeast Asia. Dwindling demand for snail mail, heavy investments in logistics and losses at a U.S. unit has pushed SingPost shares down about 28 percent in the last three years -- bringing Alibaba to a loss of S$47.8 million.
To contact the reporter on this story: Livia Yap in Singapore at lyap14@bloomberg.net.
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Cecile Vannucci
©2018 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
