The majority of shares in the postal services company Maltapost have been passed on to Redbox Ltd, a subsidiary of Lombard Bank p.l.c., following a privatisation agreement signed by the government on Thursday. Through the agreement, the government passed on 25% of its shares to Redbox Ltd, granting Lombard Bank 60% of the shares of the company.
The remaining 40% of shares the government holds in Maltapost will be placed on the Malta Stock Exchange.
During a press conference held for the occasion Minister for Industry, Investment and Information Technology Dr Austin Gatt said that this was the second phase of the privatisation of Maltapost after the first phase was completed in 2002 when the government sold off 35% of the shares to Transend Worldwide, a subsidiary of New Zealand Post. Following a four-year reform Transend Worldwide sold its interest to Redbox Ltd.
The price agreed upon for the transfer of shares is of Lm 1,217,585, which is equates to the share’s net asset value by one and half times, according to the latest verified records held by the Maltapost in September 2006. The price also represents a high price earnings ratio of 68.
Lombard Bank’s Chief Executive Officer (CEO) Mr Joseph Said also addressed the press conference stating that this step of allegiance should lead to the strengthening and betterment of the product traditionally offered by the postal services.
Mr Said emphasised that the allegiance between Lombard Bank and Maltapost will strengthen the economic viability of the company and its ability to provide services, all while allowing it to fulfill its Universal Postal Obligations without resorting to aid from the state.
Dr Said said that Lombard Bank is committed to reinforce the branch network, infrastructure, development and training of human resources within Maltapost. He also stated that the company will start providing new services such as the cashing of pension cheques for nominal payments.
