Romania Privatizing It’s Post Office in 2012

Act Media has reported that the Romanian Ministry of Communications and Informational Society (MCSI) has signed a contract with KPMG Romania and Tuca Zbarcea, & Associated to provided consulting services setting up a privatization process of the Romanian Postal Company.  The contract is designed to aid the Romanian Ministry with privatization of the Romanian Postal Corporation (Posta Romana) by the end of 2012.

In the press release, Dan Nica, minister of Communications implied that the contract is to handle the final phase of privatization of Posta Romana.

 We concluded the second stage in the privatization process and there follows a period filled up with preparations, meetings, negotiations. We proposed to conclude the privatization by the end of this year. There are already investors, international postal administration as well, which showed interested in investing in the Romanian Postal Company.

Privatization of the Romanian Postal Company Driven by International Monetary Fund

The government of Romania approved a resolution on July 31, 2012 that approved a privatization strategy that followed discussions with the International Monetary Fund.  These discussions resulted in an agreement between the IMF and the government of Romania for privatization of Posta Romana by December 31, 2012.   Privatization of the Romanian national post has been in the works since at least the first quarter of 2012 as the cash strapped country is selling numerous state assets.  See:  Romania: Struggling to Privatise and Romania: Another Controversial Sell-off

Valuation

Currently Posta Romana is 75% owned by the government of Romania and 25% owned by Proprietatea Fund, an investment corporation that holds assets seized under Communist rule.  As of June 30, 2012 the valuation of Proprietatea Fund’s investment in Posta Romana was €21.7 million  ($27.9 million)  The total valuation of Posta Romana was therefore €86.7 million. ($111.8 million)

Potential Investors

Romania-Insider reported on September 19,2012 that bPost, the Belgian Post Office has started discussions to become the strategic partner of Posta Romana with the purchase of a 20% stake in the company.  In addition to bPost, the national posts of Austria, Germany, the UK, Italy and Sweden have shown interest in Posta Romana.  KPMG Romania and Tuca Zbarcea, & Associated, the consultant that were just hired by the Romanian Government, appear to have the responsibility for structuring the deal including selecting  the strategic investor and concluding all the necessary agreements.

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