An Post close to selling off two non-core businesses
An Post is close to selling off two further subsidiaries as the company awaits a decision on a new price rise application.
It is understood the company is involved in ongoing negotiations to sell two courier and distribution firms, and that one of these is JMC Vans Trans Limited.
The company has two other courier operations, Waldermar Ltd and Transpost Limited. One of these is also likely to be sold. The purchase price for the two subsidiaries is likely to be well below the €80 million the company received for the two top-up companies it sold earlier this year to Alphyra.
The decision to sell comes after the company conducted a review of its subsidiaries and associated undertakings. The company is anxious to exit from non-core businesses.
An Post posted an operating profit of €1.8 million for 2004 but it hopes staff will accept a recent Labour Court recommendation which proposes major reform of the company’s collection and delivery system.
An Post is also awaiting a decision from ComReg on a price rise. The state-owned company wants approval for the price of a stamp to rise from 48 cent to 60 cent. The company believes it remains in a difficult financial state and is not in a position to pay the full terms of the national pay agreement.
It is understood ComReg will shortly put the issue of a price rise for An Post out to consultation. This normally takes over a month. Some sources suggest this may happen as soon as this week.
An Post is also moving ahead with plans to set up a new financial service with a joint venture partner. Banks from Ireland and overseas have been invited to propose joint venture models.
An Post believes its brand has the trust of consumers, although any new financial service could spell the end for One Direct, the current financial service offered through An Post. It also is not clear whether An Post’s relationship with AIB will be maintained if a new banking venture is established.
