Romanian Post not “surrendering” to Belgium’s small bpost * Stock market listing Romanian Post’s best capitalization option at this moment

“The Ministry for Informational Society (MSI) informs that bpost, the bidder selected for the sale of 51 per cent of Romanian Post shares, has not filed a biding offer on the deadline established (September 15, 12 p.m.).” At the same time, MSI informs, bearing in mind the improvement registered in the Romanian Post’s economic situation and the diversification of its services portfolio, the privatization process approved through Government Decision no.761/2012, with subsequent amendments and additions, will be reassessed, the Romanian company being most likely set to develop through its own forces. In fact, the Ministry emphasizes, the Romanian Post has started several actions in order to obtain fast and consistent capitalization, the method chosen by the majority shareholder – the Romanian state – being capital increase through private capital contribution.
At the same time, the Romanian Post, with the support of the Competition Council, has prepared the paperwork needed in order for the European Commission to assess the relation between the Romanian state and the public company from the standpoint of state aid. The Commission’s conclusions are meant to eliminate any suspicion concerning possible state aid elements that would endanger the Romanian Post’s investment grade.
Equity financing currently represents the best capitalization option for the Romanian Post, according to Romanian Post CEO Alexandru Petrescu.
“The privatization of the Post hasn’t failed. The fact that the current privatization formula did not have a denouement does not mean that the Post cannot look for a capitalization option more in line with the company’s current economic situation. It is obvious that at this moment the Romanian Post no longer finds itself in the situation it was in back in 2012 when Government Decision 761 concerning the privatization strategy was adopted. (…) I believe that at this moment the best capitalization option would be equity financing, namely floating the company on the stock market. The Romanian Post would be a unique opportunity for stock market investors and I believe this is the best method of expanding the capitalization options. I repeat: a failure would have been to sell the company for less than its real worth. At this moment the investment opportunity is much better and deserves a re-analysis of the capitalization method,” Petrescu pointed out in a statement remitted to Agerpres.
At the same time, the official emphasized that “at this moment the Romanian Post is a company that has registered a profit of EUR 5 M at the end of last year, after five years of losses.”
“We will remain within the profit margin in 2015 too, while scheduling consistent investments. Even so, the company find itself in the best moment to attract capital, however not in any manner, not in any conditions,” Alexandru Petrescu added.

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