Hungarian Magyar Posta could enter Romanian Post privatization bid

The Hungarian national postal service, Magyar Posta, could enter the bidding in the privatization of the Romanian post -Posta Romana. Magyar Posta announced yesterday (February 27 ) that it is interested in the Posta Romana privatization and will choose to enter the bidding, if the investment opportunities and attached conditions are right.

The Romanian government, which owns 75 percent of Posta Romana, announced on February 25 that bidding in the privatization will open on April 11. A 51 percent stake in the postal service is up for grabs and companies can participate individually or as a consortium. Entry to the bid requires proof of financial resources for a cash capital contribution of at least EUR 150 million. The Romanian Post recently secured a EUR 22 million loan from four local banks to cover working capital. In 2011, the Post reported over EUR 43.1 million in losses (RON 182.9 million), 50.1 percent more than in the previous year, according to the Ministry of Finance. The company has been on a zero profit for three years, and its turnover for 2011 stood at EUR 298.4 million (RON 1. 26 billion), a little less than 9 percent below the 2010 level. At the end of 2011, the Post’s total debts stood at over EUR 131.4 (RON 556.9 million). The Romanian Post had around 32,000 employees at the time. editor@romania-insider.com