An Post sells Subsidiaries for €85m

17 March 2005

The two companies - originally eCommercell UK and Spain - were bought from the Caudwell Group for €8.5m in February 2002. Since then An Post invested a further €7.5m in the businesses which were returned to profit in 2004. The price represents a very acceptable return to An Post on its investment. Derek Kickham, Commercial Director of An Post, said he was pleased with the deal. “Timing is important in these transactions. The price we achieved demonstrates very clearly that we moved at the right time. A new benchmark price has been set internationally for businesses in the E-TopUp sector. “Alphyra represents a natural partner for the Post TS businesses and will provide the investment to fund new products/services, exploit acquisition opportunities, look at further geographical expansion and invest in the existing terminal base,” Mr. Kickham said. “We put the two companies on the market last Autumn, following a careful analysis of trends in the European payment processing industry. The consolidation taking place in the sector, driven by a number of large payment processors, created an opportunity for us to achieve a premium price in the sale of the businesses,” he said. “Our analysis gave us confidence that the market conditions were right for the disposal of the two companies and that we had a real opportunity to optimise out position,” Mr Kickham added. The sale of the international E-TopUp companies is part of An Post’s overall recovery strategy which included a specific provision for the disposal, at the appropriate time, of non-core subsidiaries. An Post was advised by Goodbody Corporate Finance and by solicitors Arthur Cox. The sale was conducted entirely in accordance with Government guidelines for the disposal of State assets.