CVC Capital Partners ("CVC"), a leading global private equity firm, is pleased to announce that agreement on the following transactions has been reached:

  • CVC has entered into a conditional sale agreement with the Danish State for its 22% shareholder stake in Post Danmark A/S. The sale will be effected upon the closing of the merger between Post Danmark A/S and Posten AB of Sweden expected to take place during 2009.
  • CVC has entered into a conditional purchase agreement with Post Danmark A/S to acquire its entire ownership interest in De Post – La Poste, Belgium’s national postal service provider. Following the transaction companies managed and controlled by CVC Capital Partners would own 49.9% of De Post – La Poste.

In 2005 CVC acquired a 22% shareholder stake in Post Danmark A/S as part of the initial privatization of the company by the Danish State. A common business plan for the development of the company had been agreed and CVC gained two board seats, including Vice Chairman.

In 2005 Post Danmark and CVC, in consortium, were selected by the Belgian Government as its strategic partner for the modernization of the Belgian Post and as part of the partnership acquired a 50% minus one share interest in the company. A common modernization plan for De Post – La Poste was developed together with management.

On 1 April, 2008, following several months of discussions and careful evaluations, the Danish State, the Swedish State and CVC announced the intention to merge Post Danmark A/S and Posten AB to create a leading Nordic postal operator. All parties agree that this is the best industrial solution for both companies, also in light of the forthcoming further deregulation of the European postal markets. The parties have since the announcement worked on the preparations for the merger which was also announced today. As CVC would only become a small minority shareholder in the combined company, which is not consistent with its investment policies, it has been agreed that CVC will sell its shares in Post Danmark A/S to the Danish State in connection with the proposed merger with Posten AB.

It has further been agreed with Post Danmark A/S that CVC would acquire Post Danmark’s entire ownership interest in De Post – La Poste for EUR 373 million. The key milestones established in connection with Post Danmark and CVC’s investment in the Belgian Post in 2005, in terms of operational and financial performance, have now been largely met, with a marked improvement of customer and employee satisfaction, and of quality of service. It is thus a good moment for Post Danmark to withdraw from its ownership position in Belgium, also in order to allow it to fully focus on the merger with Posten AB.

Commenting on the transactions CVC Partners Geert Duyck, Søren Vestergaard-Poulsen and Peter Törnquist said: ''We are delighted to have reached agreements on the transactions; it also is a real tribute to the CVC cross office teamwork. There is considerable industrial logic in combining the Danish and Swedish postal companies with potentially substantial benefits for customers, employees and owners and we are pleased to have contributed to the creation of that company. We wish the management team of the new Nordic postal business every success going forward. We are also very pleased to be able to increase our ownership in De Post – La Poste to further cement our partnership with both the Belgian State and the excellent management team at the company. Over the past years a strong platform has been established and we look forward to continue supporting De Post – La Poste over the coming years''

Completion of the transactions are subject to customary regulatory approvals, final approval by the Finance Committee of the Danish Parliament and consent to the change of ownership in De Post – La Poste by the Belgian Government and the board of the Belgian Post.