MSI accepts bpost's non-biding offer for the privatization of the Romanian Post

Belgium's postal services operator's offer for taking over the majority stake of 51 percent of the shares in the Romanian Post has been accepted by the Ministry for Information Society (MSI).

“Following a thorough assessment of the documents submitted by the Belgian company bpost, the Privatization Commission concluded that it complies with the requirements of the related specifications”, stated Sorin Grindeanu, Minister for Information Society, as per a press release.

bpost can start now the due diligence process which enables the postal operator to access the data room, to schedule operational meetings with the company's leadership, and to negotiate the terms of the privatization agreement.

At the same time, the MSI will beconverting all outstanding debts the Romanian Post has to the state budget into equity, the precondition for submitting the non-biding offer.

Subsequently, the Belgian company will be able to present a final biding offer for the privatization of the Romanian Post.

On September 30, 2014, bpost put forward a non-biding preliminary offer for acquiring the majority stake in Romania's postal services operator, the sole one received by the Ministry for Information Society.

The selection process of the investor will be carried out by sealed tender method, combined with public call tender, preceded by negotiations based on preliminary non-binding offers.

In late 2012, the Romanian Government decided to proceed with the privatization of the Romanian Post, yet, the initiative has been unsuccessful up to this point, the authorities recording several failed attempts to sell the majority stake in the Romanian Post. The privatization is expected to be eventually carried out in 2015. The Government aims at transferring 51 percent of the company’s shares to a private investor following a capital increase.

The Romanian Post, the major player in the domestic market, is controlled by the Romanian State through the Ministry for Information Society which is the major shareholder (75 percent of the total shares), the remainder 25 percent being held by Fondul Proprietatea.

Last year, the company recorded an operating profit of over 74 million lei (16.7 million euro), ending six years of successive losses.