Belgium’s bpost makes offer for controlling stake in Romanian Post
Belgium’s national postal operator, bpost, has issued a non-binding offer to buy a 51% stake in Romania’s national postal service. Romanian Post, which is 75% owned directly by the government and 25% by a state fund set up to compensate victims of the pre-1989 communist regime, has had a majority stake up for sale since the end of 2012.
The privatisation comes as part of a broader government strategy to sell off state-owned companies, under an economic stimulus programme agreed with the International Monetary Fund.
The undisclosed offer now kicks off a due diligence phase, before a final binding offer is made by bpost.
Răzvan Coţovelea, Romania’s minister for information, said yesterday that following the offer, his government would now begin talks with the company regarding the acquisition.
“I welcome this decision by bpost, a postal operator with one of the most solid business reputations in Europe,” he said.
“Following this we will have lengthy negotiations, but I am sure the discussions will be based on transparency, professionalism and concern for all postal employees.”
Romania Post’s debt had been a concern among potential investors, but the company confirmed that following the acceptance of bpost’s offer, its debts would be converted into government shares, as it prepares its books for the next stage of privatisation. The move was a precondition of bpost’s offer.
The company, which has an annual turnover of about RON 1.3bn (EUR 292m) and a network of more than 5,600 post offices. As part of its cost-cutting efforts to restore profitability, the company laid off about 12% of its 32,000-strong work force.
Romania Post director-general Alexandru Petrescu said: “Today’s decision of the Belgian operator fulfills the requirement for successful privatisation, a process driven by the government in line with its strategy. It reflects the consistent, transparent and reliable path taken by the Privatisation Commission over the past two years, working with the organisation and the ministry.”
The Romanian government initially wanted to sell a minority 20% stake in Romanian Post under the IMF deal, but in December 2012 decided to increase the offer to a majority 51% stake in order to generate more interest among potential investors.
“By submitting this offer to purchase a 51% stake in Romania Post we have successfully completed this first step in the privatisation of the Post Office. This shows the commitment of the Romanian Government to the privatisation of large Romanian companies.”
bpost is controlled by the Belgian government, which has a 50% plus one share stake in the company. The firm made a EUR 273.3m profit on revenues of EUR 2.43bn in 2013, with profits up 20% year-on-year thanks to price increases and a cost-cutting programme.
