Italy post office ready to be privatised, worth 10 bln eur – CEO
Massimo Sarmi, CEO of the Italian post office Poste Italiane SpA, said the company is ready to be privatised and that estimates of a market value of about 10 bln eur are ‘realistic’.
Speaking in a meeting with the foreign press, Sarmi said it could take a year for the government to organise an IPO, but a direct sale to institutional investors could be much faster.
He added that he has not yet meet the new government of prime minister Romano Prodi, who was sworn in on May 17.
Poste Italiane is controlled by the economy ministry with a 65 pct stake, while 35 pct is held by the financial group Cassa Depositi e Prestiti SpA, which is owned by the government and private foundations.
Sarmi reckons that it would be easier for the government to sell part of its own stake rather than the one owned by CDP, because otherwise it would have to take into account the requests of the foundations. He ruled out the economy ministry selling its entire stake in the company.
Sarmi added that the post office is in talks with an international logistics operator over an alliance for the transport of parcels to and from Italy, on which it expects to reach an agreement by the end of the year.
In 2005, Poste Italiane increased sales to 16.486 bln eur from 14.507 bln in 2005 and net profits rose to 349 mln from 292 mln.
Poste Italiane received a 359 mln eur subsidy in 2005 from the government to cover the cost of offering a ‘universal’ postal service.
Sarmi highlighted that operating a public service costs the company over 700 mln eur a year, which is only partially covered by the government aid.
However, the increase in postal tariffs to be introduced in June will enable the postal service to break even, he said.
02-06-06 – CEP Research
Poste Italiane wants German-style postal privatisation
Poste Italiane, the Italian state-owned postal operator, could envisage privatisation in several stages like Deutsche Post, according to CEO Massimo Sarmi.
Commenting that estimates of a company value of up to €10 billion are “realistic”, Sarmi told media representatives that the gradual privatisation carried out in Germany was a model for Italy. But he also said that other options than a flotation were imaginable, such as a part-sale to institutional investors. Due diligence in preparation for an IPO has now been completed.
The Italian state owns 65% of the postal operator while the remaining 35% stake is held by the public savings bank. No talks had yet been held by the country’s new government, according to the postal chief.
Sarmi also reiterated that Poste Italiane is in talks with international logistics groups over a parcels alliance. Sarmi had said earlier this year that Poste Italiane would present a new strategy in July which could include a strategic partnership in the logistics sector.
Source: CEP-Research
