The Romanian Post could enter insolvency, as an alternative to capitalization, said Johan Meyer, portfolio co-manager in the investment fund Fondul Proprietatea (FP), which holds a minority 25% stake in the company.

The Communications Ministry, the Post’s main shareholder, has rejected the fund’s proposal. The postal operator’s capitalization process will continue, communications minister Lucian Sova said.

The state, which currently holds 75% of the Romanian Post’s shares, wants to invest RON 170 million (EUR 37 million) in capitalizing it. Fondul Proprietatea would have to come up with another EUR 12.3 million in this operation, otherwise its stake would be reduced to under 7%.

FP shows a lack of proactivity, including in supporting the interests of its shareholders, the minister said.

The investment fund sued the Romanian Post in October for having removed three members of the Board of Directors. However, the postal operator won the process with its minority shareholder.

The company could record a net profit at the end of this year, according to estimates of the Communications Ministry.

editor@romania-insider.com