Romania May Sell Post in 2016 IPO After Asset-Sales Dry Spell

  • Post `is my favorite item' on sale list: Bucharest bourse CEO
  • Sobolewski hopes Romania will list Telekom unit stake

The Bucharest Stock Exchange, which last saw an initial public offering by the Romanian government in June 2014, may get a boost from the sale of a stake in postal operator Posta Romana SA next year, Chief Executive Officer Ludwik Sobolewski said.

“Posta Romana is my favorite item on the list of Romanian privatizations,” Sobolewski said in an interview in London on Sept. 17. “Next year may be marked by the huge IPO of the post of Japan and, hopefully, another one coming out of Romania, which is one of the fastest-growing economies in eastern Europe."

The Romanian government has so far failed to stick to its pledges to sell at least three companies via the stock exchange this year, including Bucharest airports. It also failed to attract a bid from Belgium’s Bpost for 51 percent of Posta Romana by a Sept. 15 deadline.

The government may sell its stake in Posta Romana via the stock exchange after the company turned profitable, and will decide on a sale plan by the end of the year, Communication Minister Sorin Grindeanu said in an interview in Bucharest on Sept. 16.

The post had a 5 million-euro ($5.7 million) profit in 2014, after five years of losses, and plans to invest about 55 million lei ($14.2 million) to upgrade its business operations in 2015, according to the 
Communications Ministry.

Sobolewski also said he hopes Romania will sell a 46 percent stake in Telekom Romania Communications SA, which is majority owned by Deutsche Telekom’s Hellenic Telecommunications Organization SA, through the Bucharest Stock Exchange, as the government outlines a divestment plan by the end of September.

— With assistance by Andra Timu

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