Describing the public’s overwhelming take-up of Maltapost shares as an expression of confidence in both the economy and the prospects of the company itself, Investments, Industry and Information Technology Minister Austin Gatt yesterday said the government was keen on moving ahead with the further privatisation of state assets.
Taking a question from The Malta Independent yesterday, Dr Gatt commented that next on the agenda is the privatisation of state-owned Enemalta’s petroleum assets, while similar discussions on the privatisation of Enemalta’s liquid petroleum gas operations are nearing their conclusion but have been temporarily placed on the backburner.
Asked about the government’s intentions for the government’s remaining 20 per cent shareholding in Malta International Airport, Dr Gatt commented “at the moment the government has no intention of divesting itself of its MIA shares”.
The government’s 40 per cent Maltapost shareholding, amounting to 11.2 million shares, was scooped up this week, first during the pre-placement period, during which 5,040,000 shares were offered, and through the public offering of 6,160,000 shares. In the former instance, demand outstripped the supply of shares 13.5 times over with applications for 67,120,000 shares. Shares offered to the public meanwhile, had been oversubscribed six times over with offers for a total of 37,719,400 shares.
As such, Dr Gatt remarked, the public had been ready to invest a total of e52 million (Lm22.3 million) in the company.
In all, Dr Gatt cited yesterday, some 3,000 private and institutional investors had rallied for a piece of Maltapost, which he described as an enormous vote of confidence in the future of the company itself as well as in the Maltese economy and in the government’s policies, considering the fact, he said, that the opposition had initially objected to the privatisation of the national postal company.
“The people,” he added, “have clearly voted in favour of the government’s policy with its money.” While the company registered profits last year following investments in upgrading its service, the company, he said, was looking toward another profitable year in 2008.
Maltapost shares are expected to begin trading on the Malta Stock Exchange on 25 January.
The government’s policy toward privatisation had, Dr Gatt said, two main scopes and has been successful on both fronts. The first was seeing Malta’s swollen public sector staff levels, which are larger than EU averages, being reduced to more sustainable levels. At the same time the exercise was aimed at reducing subsidies given to state-owned corporations.
Public service staff levels, he added, have been reduced by 50 per cent since 2003, while the government has also registered considerable success in reducing subsidies given to state arms such as Public Broadcasting Services, the Water Services Corporation, Air Malta and Malta Shipyards. Such subsidies, he quantified, have been slashed from e41 million (Lm17.6 million) in 2003 to e23 million (Lm9.9 million). Moreover, losses from state-owned enterprises have also dropped from e88 million (Lm37.7 million) in 2003 to today’s losses of just above e22 million (Lm9.4 million).