Strong development in the value of Norway Post
According to a valuation carried out by Enskilda Securities, Norway Post Group is worth NOK 7.7 billion. This is an increase of NOK 2.2 billion, or 41 per cent, from last year.
“This development in value shows that Norway Post is making great progress. Compared with the largest companies on the Oslo Stock Exchange, we are doing well,” says Norway Post chief executive Kaare Frydenberg.
One of Norway Post’s four overall objectives is a competitive development in value. “We are pleased that this objective is now being met,” Frydenberg says.
According to Frydenberg the progress is due to higher profitability in Norway Post achieved through increased efficiency and a business-oriented approach, combined with improvements in service and quality.
Enskilda Securities estimates the value of the Norway Post Group at NOK 8.4 billion, before deduction of NOK 0.7 billion in net interest-bearing liabilities. The value of the parent company, Posten Norge AS, is estimated at NOK 5.5 billion. The corresponding value estimate for ErgoGroup AS, which is Norway Post’s largest subsidiary, is NOK 2.2 billion, with the total value of the remaining subsidiaries being estimated at NOK 0.7 billion.
Positive development
Compared with a corresponding valuation carried out in 2003, this year’s valuation shows that the value of the Group has increased by NOK 2.2 billion, or 41 per cent.
Enskilda Securities concludes that the Norway Post Group enjoys a leading position in the market, is a strong brand with potential for improved profitability, and pursues a selective growth strategy which strengthens Norway Post’s position as a leading communications and logistics company. In addition, Enskilda Securities points out that Norway Post has “demonstrated a sound ability to implement cost-reducing measures, and is among the world’s most efficient postal enterprises.
The following valuations have been carried out of Norway Post in recent
years:
2000: NOK 4.8 billion (carried out by DnB Markets and PWC in June 2000)
2002: NOK 6.3 billion (carried out by DnB Markets and PWC in February/March 2002)
2003: NOK 5.5 billion (carried out by DnB Markets in February/March 2003)
2004: NOK 7.7 billion (carried out by Enskilda Securities in June 2004)
Enskilda Securities chosen after competitive tendering The valuations carried out of Norway Post in 2000, 2002 and 2003 were made at the request of the Norwegian Ministry of Transport and Communications. As the Ministry will not be implementing any valuation this year, Norway Post acted on its own initiative, and asked Enskilda Securities to carry out this year’s valuation, following a process of open tendering.
