CVC exits Post Danmark, buys Belgian operator

The buyout firm will pay €373m for half of De Post - La Poste, Belgium's postal service operator, as part of its exit from Danish group Post Danmark.

Global buyout firm CVC Capital Partners has agreed to sell back to the Danish government its 22 percent stake in Post Danmark, the Danish postal service privatised in 2005. The sale will go through when Post Danmark merges with Swedish group Posten AB.

As the same time, CVC will buy Post Danmark's entire stake in De Post – La Poste, Belgium's national postal service provider, for €373 million, leaving CVC with 49.9 percent of the Belgian company.

The merger of the Danish and Swedish postal services into one Nordic postal operator was announced in April last year.

CVC said it agreed to sell its stake in Post Danmark back to the Danish government, because small minority shareholdings are “not consistent with its investment policies”.

Completion of the transactions is subject to regulatory approval and consent from the Danish and Belgian governments.

CVC, which recently closed its latest mega fund European Equity Partners V on €11 billion, is one of the private equity firms interested in backing the UK's postal service, Royal Mail, according to media reports in January.

Peter Mandelson, the UK government's business secretary, said the British government would welcome a private partner to rescue the country's beleaguered mail service, calling for part-privatisation to send in “a gale force of fresh air to the management culture of Royal Mail”.