Investors shy away from placing bids for Romanian Post as state company's fiscal debt grows further

There wasn't a single investor willing to buy the task book in the privatization of Romania's state-owned postal service so far, and the deadline expired on Tuesday, May 28. The potential investors interested in the company have asked for a delay in the deadline for offers, after the tax administration ANAF calculated EUR 25 million in new fiscal debt for the Romanian Post, according to company sources, quoted by local news agency Mediafax. Earlier this year, the Hungarian postal services operator Magyar Posta announced its interest in the privatization of the Romanian Post, if the investment opportunities and attached conditions were right. In total, the Romanian Post has some EUR 53 million in fiscal debt. With 7,100 post offices across Romania, the widest such network in the country, and with over 32,000 employees, the Post's losses increased by 50 percent in 2011, to some EUR 42.3 million. The Romanian government, which owns 75 percent of the Romanian Post, 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. editor@romania-insider.com