The planned sale of the Italian government’s stake in postal service Poste Italiane could be worth around 4.4 billion euros ($4.76 billion), Economy Minister Giancarlo Giorgetti said on Wednesday.
The Treasury intends to sell all or part of its 29.3% direct stake in Poste, while retaining control through another 35% held by state bank Cassa Depositi e Prestiti (CDP).
“Italy will carry out the transaction at the time most appropriate to maximize the revenue,” Giorgetti said during a parliamentary hearing. He said the deal could result in savings on debt interest worth about 200 million euros per year.
The sale is part of Rome’s plans to raise about 20 billion euros from asset sales between 2024 and 2026 to curb one of the world’s highest public debt’s in relation to domestic output.
Under a decree adopted in January, Italy can use a public offering, an accelerated bookbuilding procedure, a block trade, or a combination of these methods to sell the shares.
The transaction will be carried out in stages and initially the state may stop once its stake drops to 51% when factoring in both the Treasury and CDP stakes, Giorgetti said.
Facing criticism from the opposition and trade unions for selling part of a key public service, Giorgetti said Poste’s new industrial plan does not envisage any job cuts.
“It will be the government’s responsibility to monitor business decisions in order to ensure that jobs are safeguarded.”
The deal “could increase confidence of domestic and foreign investors in Italy, boosting the attractiveness of government sovereign bonds,” he added.
Source: Reuters.com