Country sheet: Malta – Main developments in the postal sector (2006-2008)
Country sheet: Malta – Main developments in the postal sector (2006-2008)
Read MoreTag: Malta Communications Authority
Quality of Service (QoS) Targets to be achieved by Maltapost Plc Decision Notice and Response to Consultation
Quality of Service (QoS) Targets to be achieved by Maltapost Plc
Decision Notice and Response to Consultation
Cabinet approves sale of Maltapost shares to Lombard Bank
The Cabinet yesterday approved the implementation of the second of three stages in the privatisation of Maltapost, which is the transfer of 25 per cent of the Government’s shareholding to Redbox Ltd, a wholly-owned subsidiary of Lombard Bank plc. As a result of this transfer Lombard Bank plc will effectively become the majority shareholder in Maltapost plc with 60 pct of the shares.
Government said the agreed price for the shares was Lm 1,217,585 (EUR2,836,210). This represented a 50 per cent premium over the net asset value of the shares based on the last audited accounts of the company. Based on the average profits of Maltapost in the past three years, the price represents a price to earnings ratio of 68. So, apart from believing that this step was strategically important for the company, Government also believes that the agreed price is an advantageous one.
The Cabinet also approved the proposal by Investment, Industry and IT Minister Austin Gatt that Maltapost plc should be fully privatized.
Government shall, in the coming months, initiate the process for selling the remaining 40 per cent of its shares via an Initial Public Offering on the Malta Stock Exchange.
Government believes it should not operate in commercial areas which are best left to the private sector.
Read MoreMalta: Competition in postal services sector uncertain
As the European Parliament prepares to vote on a draft directive for the full market opening of postal services this month, the Malta Communications Authority (MCA) told MaltaMedia that “It is still early to tell if anyone would be interested in setting up shop following liberalization” in Malta.
Recently that Transport Committee said that the deadline for remaining postal service monopolies in European Union (EU) member states, such as Maltapost in Malta, should expire by 31st December 2010, two years later than the 1st January 2009 deadline proposed by the European Commission.
The two-year postponement was a compromise to get the proposal through.
Some Members of the European Parliament had argued that in parts of the EU, more time is needed to create a stable regulatory framework for ensuring that post continues to be delivered EU-wide at an affordable cost, and to enable postal operators to adapt to new market conditions.
Full market opening should mean that national operators will no longer have a monopoly on mail below the maximum weight of 50 grams, known as the reserved area.
In this light, a spokesperson for the MCA told MaltaMedia that Malta is not “among the ‘laggards’, having rationalised its postal operation some time back.” While noting that “it is debatable whether an additional two year ‘closed-shop’ will bring about added efficiency” to post services operations, the spokesperson added that in the other sector that it regulates, it was the actual market opening that served to spur the relative operators to adapt to open market conditions.
In fact, a new operator recently entered the market providing full territorial coverage within the universal service area, specifically seeing to the delivery of summons in line with the Local Tribunals Regulations. This service already falls outside the area currently reserved for Maltapost.
Read MoreConsultation paper on postal services standards
The Malta Communications Authority, as the independent regulator of the postal sector in Malta, yesterday published a consultation paper on the quality of service standards to be met by Maltapost plc. Joseph Tabone, MCA chairman, said: “Efficient and cost effective postal services are an essential element of the infrastructure needed by businesses and individuals alike. The quality of service targets set for Maltapost must reflect what customers want and what Maltapost can achieve by focusing its efforts on meeting the ever rising customer requirements”. The consultation process will specifically target the standards to be met by Maltapost as the designated universal service provider.
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