France's La Poste plans to raise capital
France’s La Poste aims to raise up to euro3 billion (USD 4.43 billion) through a capital increase to finance its development ahead of the opening of the European postal industry to full competition in 2011, the state-controlled mail carrier’s chief executive said.
La Poste, Europe’s second largest mail carrier with annual sales of euro20.8 billion (USD 30.7 billion), plans to launch the capital hike in 2010, via either a sale of a stake in its capital to one or more institutional partners or a public offering of shares to retail investors and employees, Jean-Paul Bailly said at a news conference.
La Poste must first negotiate a change in its legal status from state-run enterprise to limited liability company, which is planned by the end of 2009, Bailly said.
“This morning I informed the board of directors of a plan to rapidly propose this project to the government,” Bailly said. La Poste needs approval from the government to go ahead with the plan.
In a statement, French Prime Minister Francois Fillon said the government would make a decision in the coming weeks.
Bailly said it was “premature” to say what share of La Poste’s capital would be sold to investors, or to speculate on the company’s valuation. French press reports last month suggested the company could be valued at around euro10 billion (USD14.8 billion) and that a 20 percent stake could be sold.
France’s La Poste aims to raise up to euro3 billion (USD 4.43 billion) through a capital increase to finance its development ahead of the opening of the European postal industry to full competition in 2011, the state-controlled mail carrier’s chief executive said.
La Poste, Europe’s second largest mail carrier with annual sales of euro20.8 billion (USD 30.7 billion), plans to launch the capital hike in 2010, via either a sale of a stake in its capital to one or more institutional partners or a public offering of shares to retail investors and employees, Jean-Paul Bailly said at a news conference.
La Poste must first negotiate a change in its legal status from state-run enterprise to limited liability company, which is planned by the end of 2009, Bailly said.
“This morning I informed the board of directors of a plan to rapidly propose this project to the government,” Bailly said. La Poste needs approval from the government to go ahead with the plan.
In a statement, French Prime Minister Francois Fillon said the government would make a decision in the coming weeks.
Bailly said it was “premature” to say what share of La Poste’s capital would be sold to investors, or to speculate on the company’s valuation. French press reports last month suggested the company could be valued at around euro10 billion (USD14.8 billion) and that a 20 percent stake could be sold.
Last year La Poste carried 28.5 billion letters and documents.
