September 25, 2024
Italy Preparing to Sell Poste Stake to Raise About €2.4 Billion – BNN Bloomberg #ItalyFinance

Italy Preparing to Sell Poste Stake to Raise About €2.4 Billion – BNN Bloomberg #ItalyFinance

CashNews.co

(Bloomberg) — Italian Prime Minister Giorgia Meloni is preparing to sell as much as 15% of Poste Italiane SpA as part of a privatization drive aimed at cutting the country’s mammoth debt, according to people familiar with the matter.

Italy hopes to receive about €2.4 billion ($2.7 billion) from the sale, said the people, who declined to be identified because the information isn’t public. The process will start by Oct. 21 and the government has begun to select advisors, Italian media have reported.

Italy’s Finance Ministry had no immediate comment when contacted.

Meloni is trying to sell about €20 billion of state-held assets by 2026 to reduce a debt pile that stands at 134% of gross domestic product. Doing so would help free up resources for next year’s budget, which is planned at about €25 billion. It must be presented next month and approved by year-end.

The Finance Ministry holds 29.3% of Poste, while state lender Cassa Depositi e Prestiti SpA has a 35% stake. The government has so far raised about €3 billion by reducing its stakes in lender Monte dei Paschi di Siena Spa and oil giant Eni SpA.

–With assistance from Flavia Rotondi.

©2024 Bloomberg L.P.

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