PostNord’s owners, the Swedish and Danish states, have agreed to provide funding of Skr2.2bn (US$268m) to transform the company’s Danish operations.
The agreement will result in Skr1.53bn (US$186m) being provided by the Danish state to cover legacy costs relating to the reduction of Danish employees with special employment conditions; an extra Skr267m (US$33m) from the Danish state as an equity contribution; and Skr400m (US$49m) from the Swedish state as an equity contribution.
Jens Moberg, chairman of the board, PostNord, said, “Digitization has resulted in the need for a major transformation of the Danish business operations. We are therefore very pleased that the owners have come to an agreement regarding the financing of this and that the owners are united in their support for PostNord’s business activities.
“This means that we can now resume the transformation of the Danish operations with renewed vigor. Together with the amendments to the Swedish postal regulations that have been announced, this creates a good basis for the entire group’s continued stability and strategic development.
“Once the transformation is complete, we will be able to maintain the universal postal service and have profitable letter-related activities, even with the small letter volumes that now exist in Denmark, and we will be a role model for postal services around the world that are experiencing the same trend with decreasing letter volumes.”
October 23, 2017