The sale of a 25 per cent stake in Post Danmark has now been finalised. CVC Capital Partners and the Danish Ministry of Transport and Energy have signed a share purchase agreement, subject only to approvals from the financial committee of the Danish Parliament and from the EU’s competition authorities.
A 25 per cent stake in Post Danmark will come under new ownership. That is the outcome of a share purchase agreement just finalised between the Danish Ministry of Transport and Energy and CVC Capital Partners. Under the agreement, CVC will acquire a 22 per cent stake of Post Danmark, while 2.5 per cent of the shares will be held for an employee share programme for almost 22,000 employees of Post Danmark. An additional 0.5 per cent will be reserved for an incentive programme for senior staff of Post Danmark.
The agreement is the result of more than two months of exclusive negotiations between the Ministry and CVC Capital Partners.
I’m very pleased with the outcome of the sales process. I’m confident that CVC Capital Partners will add extra momentum to Post Danmark’s development as an international operator. Such momentum is essential if Post Danmark is to retain maximum independence over the next few years as the European postal sector goes through deregulation. Having no other ties in the postal sector, CVC as a shareholder will provide Post Danmark with the necessary flexibility. I am also confident that as a competent shareholder CVC will contribute to the further development of the company so that Post Danmark can continue to provide high-quality postal services in Denmark”, says Minister for Transport and Energy Flemming Hansen.
CVC Capital Partners is paying DKK 1.27bn for the 22 per cent stake in Post Danmark, valuing the entire company at an enterprise value of DKK 8.4bn on a debt-free basis. The transaction is subject to approvals by the financial committee of the Danish Parliament and the EU Competition Council. These approvals are expected within approximately one month.
At an extraordinary general meeting at Post Danmark, Peter Törnquist, Senior Managing Director, responsible for CVC’s Nordic business, and Søren Vestergaard-Poulsen, Managing Director of CVC Capital Partners Denmark will join the company’s Board of Directors.
“Our negotiations with the Ministry of Transport and Energy were held in a very constructive atmosphere. We’re now looking forward to an equally constructive collaboration with Post Danmark’s management. We intend to leverage our extensive experience in international business development and our comprehensive European business network to give Post Danmark access to specific know-how and expertise regarding general strategic and operational issues. We’re very much looking forward to getting started”, says Peter Törnquist.
The increase in the number of shareholders will have no immediate effect on Post Danmark’s dayto-day operations.
“I am pleased that the sales process has now been finalised”, says Fritz H. Schur, chairman of the Board of Directors of Post Danmark A/S. “CVC will make an outstanding partner with us, and I am looking forward to working together with them on the further development of Post Danmark, so that we can create an even better company than we have today. Furthermore, I am very pleased with the outcome from discussions held with CVC on the future of the company and the cooperation between Post Danmark, the Minister and the Ministry during the sales process”, he adds.
“We welcome our new shareholder”, says Post Danmark CEO Helge Israelsen. “CVC have given their full backing to our existing business plan, including our plans for our future customer services. I believe that CVC will be a key contributor in defining Post Danmark’s long-term plans and that they will be a key professional player in the further development of our international strategy”, he adds.
Post Danmark’s employees also take a positive view of the company’s prospects after the arrival of CVC as a shareholder.
“During the negotiations, the employees obviously focused on how the new ownership structure would affect their jobs, but I don’t see any cause for concern. I’ve had no indication that CVC’s agenda for the employees and the working environment is any different than the one Post Danmark has been pursuing. On the other hand, we’re very pleased that Post Danmark will retain its independence and be able to select its future international business partners”, says Isa Rogild, employee-selected member of the Board of Post Danmark and chairperson of the HK/Post & Kommunikation chapter of the Union of Commercial and Clerical Employees in Denmark.
Employee-selected member of the Board, Jens Bendtsen, Bargaining Secretary of 3F, says: “It’s no secret that I had expected the new minority shareholder to be an industrial partner. That has proved not to be the case, but I welcome CVC and look forward to working with them. I’m also pleased to note that 3 per cent of the shares will be reserved for the employees, which means that the Minister for Transport and Energy has kept his promise.”
Together, the State of Denmark and CVC will work towards realising the business potential of Post Danmark in the years ahead.