Bpost is poised for a stock exchange flotation this summer with the planned sale by Britishprivate investor CVC Capital Partners of at least half its 50% stake in the Belgian postal
group.Several Belgian newspapers reported today that CVC plans to sell a 25% – 30% stake in bpost onthe Brussels stock exchange “by the start of the summer”. The IPO could generate between €550million and €900 million, depending on the valuation of bpost, which is put at between €2.2 billionand €3 billion.
The IPO would leave CVC, which holds 50% of bpost shares minus one, with a minority stake of 20%– 25%. According to sources, the private equity company could sell off the rest of its sharesduring the year after the IPO. The Belgian government, which owns 50% plus one share in bpost,would retain its slight majority stake in the postal operator.
A bpost spokesman told CEP-Research that the company could not comment as an IPO “is an issuefor shareholders”. Neither CVC nor the Belgian government wished to comment to Belgian media.
According to the media reports, the path for the IPO is expected to be cleared by twosignificant developments. The company’s shareholders today approved a plan to reduce the company’scapital by paying out €144 million to the two shareholders. Secondly, the European Commission isexpected to decide by the end of April on the company’s 2011-2015 management contract, whichdetermines how much the Belgian state is entitled to compensate bpost for public postalservices.
A potential IPO has been on the agenda for bpost ever since the company was partly-privatised in2005 when a consortium of CVC and Post Danmark bought the 50% stake for €300 million. In 2009 CVCtook over Post Danmark’s stake in bpost in exchange for selling back its stake in the Danish postaloperator to the Danish state in order to enable the creation of Swedish-Danish postal groupPostNord.
Bpost has improved its financial results markedly in recent years, thus making an IPO moreattractive. In 2012, bpost’s turnover rose moderately by 2.2% to € 2,416 million in 2012, accordingto unaudited figures. However, operating profits grew strongly, with EBITDA up 11.6% to €502million and EBIT 12.7% higher at €404 million. The increases were very similar to 2011, whenturnover was 2% higher, EBIT improved by 12.3% and the operating profit margin rose to 15.2%.
