The Romanian state has accepted the non-binding offer made by Belgian postal operator bpost for the Romanian Post. The Belgian group should continue its due diligence and then make an engaging offer for the 51% majority stake that is up for sale, Romania’s Ministry of Communications announced on Tuesday, February 3.

“The Privatization Commission has thoroughly analyzed the documents submitted by Belgian company bpost and concluded that these corresponded to the requirements of the tender specifications. We invite the bidder to continue its due diligence and to move on to the next stage by submitting a firm offer for the Romanian Post’s majority stake,” said communications minister Sorin Grindeanu.

“The postal operator had a substantial profit in 2014, after six consecutive years of losses, and proved that it can be a valuable asset for a strategic investor,” Grindeanu added in a press statement. He didn’t specify how much profit the Romanian Post made last year.

Bpost was the only investor to make a non-binding tender offer for the Romanian Post in September last year. The due diligence phase consists of access to the company’s data room, operational meetings with the company’s management and negotiations over the privatization contract.

Meanwhile, the Ministry of Communications will work on finalizing the Post’s debt conversion into shares, which should make the company more attractive.

Romania’s Government started the Post’s privatization process in December 2012. The state plans to sell 51% of the company’s shares. The state currently holds 75% of the company’s shares, and Romanian investment fund Fondul Proprietatea holds the remaining 25%.

The Romanian Post has an annual turnover of over EUR 270 million. It operates over 5,600 postal offices around Romania and has more than 27,000 employees, which makes it the country’s largest employer.

editor@romania-insider.com