bpost submitted a non-binding bid Tuesday, the deadline, to take over the majority stake in the Romanian company.
Romania tried to privatize its loss-incurring postal operator last year but failed as no interested parties submitted any bids. In September last year, the government approved a plan to convert the postal operator’s debt to the state into shares before putting it up for privatization again. The Belgian investor’s bid will trigger the debt conversion operation.
If selected, bpost will conduct due diligence and will then be able to submit a binding bid for the Romanian postal company .
With a turnover of RON1.15 billion in 2013, Posta Romana is the largest postal operator in Romania and has more than 5,600 local offices across the country. It is 75% owned by the state and 25% by investment fund Fondul Proprietatea. At the end of 2012, the company had debts amounting to RON568.2 million, after amassing losses of RON530 million in 2008-2012.
Majority-owned by the Belgian government, with 51.04%, bpost had revenues of EUR2.44 billion in 2013, up 0.5% on the year, and its net profit stood at EUR287.9 million, from EUR174.2 million in 2012. bpost is listed on Euronext Brussels and 48.5% of its capital is held by private investors.