Estonian minister: Omniva will be privatised

Kristen Michal, Estonian Minister of Economic Affairs and Infrastructure, said that the public enterprise Eesti Post (Omniva) would be privatised as soon as possible, because, at least with regard to the package delivery business, it was not a strategic business area for the state.

“We have two aspects here that we would like to draw attention to. One aspect is how the state offers an universal postal service, which is regulated by legislation; however, the package delivery business is not the state’s core function, at least in my personal opinion,” said Kristen Michal, Minister of Economic Affairs and Infrastructure, regarding the potential privatisation of Eesti Post in near future.

He added that the package delivery business of Eesti Post might easily be placed partly on the stock exchange or the company might find a partner with whom it could be decided whether the company will be taken partly to the stock exchange or if it will be privatised as a minority or majority shareholding. “In fact, all these options are currently on the table and several weeks ago the government gave their mandate so that we could review the package delivery business of Omniva,” said Michal.

Currently, the final decision-making has been suspended due to the legislative intent to prepare a new Estonian Postal Act and discussions regarding the establishment of a larger group of public enterprises. Although the decision to privatise the postal company might be made this year, Michal foresees that this idea will be implemented in a few years.

However, he also said that the situation with the privatisation of Eesti Post might clear up already within several months.

Aavo Kärmas, Chairman of the Management Board of Eesti Post, added that the growth need of the company’s package delivery business was an argument for privatisation, which for sure would entail risks that the state did not see necessary to take. “In Europe, an increasing number of postal companies are privatised – there are minor and major shareholdings, and also companies that are completely privatised,” said Kärmas. “Even when a company is privatised, it does not mean in any way that the universal postal service should take a hit,” confirmed the manager of Eesti Post.

AS Eesti Post is an international group that offers postal, logistics and information logistics services. The group comprises the parent company AS Eesti Post, a subsidiary AS Maksekeskus, a subsidiary located in Lithuania UAB Omniva LT, a subsidiary located in Latvia SIA Omniva and an associated undertaking OÜ Post11. The main field of activity of the parent company is the provision of postal, logistics and information logistics services and e-mail processing (Omniva invoice centre). The main business of SIA Omniva and UAB Omniva LT is to offer parcel machine and courier services on the Latvian and Lithuanian market. AS Maksekeskus is involved in offering payment solutions for e-commerce companies in the Baltic countries. Post11 offers e-commerce companies international full logistics solutions for delivering goods across the world.

AS Eesti Post is a company that belongs 100% to the state and is administered by the Ministry of Economic Affairs and Communications.

Source: Omniva

    footer picture