Malta happy with postal service
A survey conducted by the Malta Communications Authority shows that most people are satisfied with the country’s postal service.
Read MoreTag: Maltapost
Privatisation of Maltapost
The Malta Star has reported that Maltapost is to be completely privatised.
The Government has announced that it will be selling its 40 per cent share holding in the company.
The major shareholder after the privatisation of the postal services is complete will be the Lombard Bank.
Maltapost Chairman Dr Joseph Said, commented that Maltapost offers one of the most efficient services around Europe and was classified as the 16th most efficient postal service out of 40 countries surveyed.
Read MoreGovernment to shed its stake in MaltaPost
The government’s 40 per cent shareholding in MaltaPost is being offered for sale via an Initial Public Offering (IPO) and MaltaPost shares will be quoted on the Malta Stock Exchange later this month.
At a news conference held at the Mediterranean Conference Centre early last week to announce the sale, Minister Austin Gatt succinctly explained, “The government’s business is government and not business.”
He said that the event was the final step in Maltapost’s privatisation process that had began five years ago resulting in a leaner and more efficient postal service that could operate on commercial lines. As a government entity the postal service was “expensive to run and resulted in taxpayers’ money being poured in,” he said. In the Maltese context, he believed it made sense to allow Lombard Bank, a strong and respected local financial institution, to take a majority stake “but we are now also providing an opportunity to the public to invest in this company by putting our remaining shares up for sale through this IPO,” he said. We did this with a purpose. A deal could have been struck to sell all the government’s shares to Lombard Bank, but this government believes in extending the public an opportunity to invest and that is why we are listing the shares on the stock exchange.”
The share offer is of 11,200,000 shares of a nominal value of e0.25c per share at a Share Offer Price of e0.50c per share. The offer is being made by the Malta government and Malta Government Investment Limited that currently own 40 per cent of the company. Maltapost market capitalisation is currently set at e14,000,000. The company is also to adopt a dividend policy of distributing up to 50 per cent of yearly available profits.
1 USD = 0.288408 MTL
Read MoreCabinet 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 MoreTransfer of 25 percent of Maltapost shares approved
The cabinet of ministers has approved the transfer of 25 percent of shares the government holds in Maltapost plc. to Lombard Bank plc.
The second of three phases of the privatization of Maltapost now sees Lombard Bank as the holder of 60 percent of the shares in the company.
In the coming months, following the advice given by the Ministry for Investment, industry and Information Technology, the government will be offering the remaining 40 percent of shares to the public to complete the total privatization of the company.
The government believes that it should not operate where such operations can be carried out by the private sector. According to European law postal distribution should be liberalized within three years. The market is regulated by the Communications Authority so as to assure regulated prices.
At the moment post weighing more then 50 grams is part of a liberalized and competitive market. The EU is currently studying the regularization of postage in order to open the postal market for competition by 2009.
Shortly the government will be signing an agreement with Lombard Bank plc. in order to assure that postal obligations are met.
The ministry also held meetings with the UHM who represent Maltapost employees to explain the privatization process.
Maltapost employees prior to 1995 can opt to move once again to a post within the governmental departments as stated in the 1996 agreement regarding public service employees affected by the privatization process.
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