Pos Malaysia set to privatise
In an unexpected deal Malaysia Post is set to be acquired under the countrys privatisation programme by Phileo Allied. Malaysia Post (Pos Malaysia) is set to be sold to finance company Phileo Allied in a cash and convertible note deal valued at M$800 million (US $210.5 million). Of this M£550 million is in cash. The remaining M$250 million will be paid in convertible loan stocks, which the Government can elect to convert into new Phileo shares any time in the next five years. In a statement to Malaysias stock exchange, Phileo Allied said it had signed a conditional sale and purchase agreement with the Ministry of Finance to acquire the company.
Since 1996, Pos Malaysia has seen a minimum of M$5 billion flowing through its network of branches and mini post offices each year. This part of the business, rather that the traditional mail operations, is potentially Pos Malaysias most lucrative asset, industry analysts have said. Phileo Allied sold its bank last year and the deal is seen as a bid to return to its core financial service.
