(Reuters) – Singapore Post said on Monday it is selling its Australian business, Freight Management Holdings, to private equity firm Pacific Equity Partners for a cash consideration of A$775.9 million ($505.4 million).

The sale will generate an expected gain on disposal of S$312.1 million ($233.1 million), the company said.

This move follows SingPost’s strategic review initiated in July 2023, and an announcement last week regarding exclusive talks for the potential sale of its Australian business.

The board will consider a special dividend payment after taking into account the repayment of the Australian dollar-denominated borrowing and future funding needs, the Alibaba-backed firm said.

($1 = 1.5352 Australian dollars)

($1 = 1.3390 Singapore dollars)

(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Lisa Shumaker)