Cabinet approves sale of Maltapost

The Cabinet yesterday approved the transfer of 25 per cent of the government's shares in Maltapost to Lombard Bank for Lm1,217,585 (€2,836,210).

Lombard now becomes the company's majority shareholder with a 60 per cent shareholding.

The sale price represents one and a half times the net asset value of the shares according to the company's latest audited accounts, the Investments Ministry said.

The Cabinet also agreed with Investments Minister Austin Gatt's proposal for the complete privatisation of Maltapost; the government intends to sell its remaining 40 per cent shareholding to the public.

In a statement the Investments Ministry said the government believed the state should not compete with the private sector. The postal market, it said, is already partially liberalised and according to European law has to be fully liberalised by 2009. It therefore made no sense for the government to remain in such a market.

The ministry said the government will continue to ensure - through the Malta Communications Authority - that Maltapost respects its universal postal obligations in the interest of its consumers.

The government will also sign an agreement shortly with Lombard Bank which will facilitate the sale of the government's remaining 40 per cent shareholding in Maltapost on the Malta Stock Exchange and ensure that Maltapost remains a national postal operator and continues to respect its universal postal obligations.

The Investments Ministry said it had explained Maltapost's privatisation to the UHM and Lombard Bank had agreed to guarantee the employment of all Maltapost's personnel.

It said Maltapost employees who formed part of the Posts Department before 1995 will have the right to return to the civil service as stipulated in the 1996 agreement for public sector workers affected by privatisations.