Transfer of 25 percent of Maltapost shares approved
The cabinet of ministers has approved the transfer of 25 percent of shares the government holds in Maltapost plc. to Lombard Bank plc.
The second of three phases of the privatization of Maltapost now sees Lombard Bank as the holder of 60 percent of the shares in the company.
The price for the transfer of the shares is that of Lm1,217,585 and represents 1.5 times the net asset value of the shares. When one considers the profit made by Maltapost plc., in the last three years, the price is also representative of very high price earnings ratio of 68. This has led the government to believe that price for the shares are very good.
In the coming months, following the advice given by the Ministry for Investment, industry and Information Technology, the government will be offering the remaining 40 percent of shares to the public to complete the total privatization of the company.
The government believes that it should not operate where such operations can be carried out by the private sector. According to European law postal distribution should be liberalized within three years. The market is regulated by the Communications Authority so as to assure regulated prices.
At the moment post weighing more then 50 grams is part of a liberalized and competitive market. The EU is currently studying the regularization of postage in order to open the postal market for competition by 2009.
Shortly the government will be signing an agreement with Lombard Bank plc. in order to assure that postal obligations are met.
The ministry also held meetings with the UHM who represent Maltapost employees to explain the privatization process.
Maltapost employees prior to 1995 can opt to move once again to a post within the governmental departments as stated in the 1996 agreement regarding public service employees affected by the privatization process.
The government believes that thanks to the privatization of Maltapost plc. The company will be in a better position to compete within this vital market for the Maltese economy. The main shareholder Lombard Bank plc. is an established bank with a long history in Malta and which holds foreign investments and shares quoted in the Malta Stock Exchange.
Lombard Bank plc. also proved its commitment towards Malta, the Maltese commercial community and its employees when a minor shareholder. This augurs well for the future of Maltapost plc with regards to customer services and employees who earn their living from the company.
