On 2 April 2026, the Government of the Republic of Estonia decided to begin preparations for the sale of the shares of Aktsiaselts Eesti Post, operating under the Omniva brand, through a public auction.
Aktsiaselts Eesti Post, operating under the Omniva brand, provides the nationwide development and management of Estonia’s postal network as a public service obligation, ensuring the provision of both domestic and international postal services. While the company’s home market is the Baltics, its operations extend to more than ten countries outside the region. Under the Postal Act, Omniva has been designated as the provider of the Universal Postal Service (UPS) in Estonia.
According to the expectations approved by the Minister of Regional Affairs and Agriculture, acting as the representative of the owner, the company’s primary strategic objective is to ensure sustainable access to postal services for the people of Estonia through the provision of a high-quality Universal Postal Service. In recent years, the company’s business has shifted significantly towards commerce and logistics services – in 2025, the Universal Postal Service accounted for only 5% of total revenue. At the same time, customer needs and habits have changed considerably, and the volume of traditional postal services has declined by more than 75% over the past five years.
In light of the changing market environment and the declining use of postal services, the Government of the Republic of Estonia decided on 2 April 2026 to begin preparations for the sale of the company’s shares through a public auction. In practice, this means that the state is moving forward with preparations for the privatisation of the company. Preparations for the public auction will begin in 2026, with the share purchase agreement expected to be concluded during 2027.
The sale will not change the principles governing the provision of the Universal Postal Service. The obligation to provide the service is established by law, and the state will continue to have the necessary regulatory mechanisms to ensure its continuity. Omniva’s obligation to provide and develop the Universal Postal Service will remain in force after privatisation.
Until now, the state’s ownership in the company has primarily been linked to ensuring the provision of the Universal Postal Service and maintaining the postal network required for its delivery. Going forward, the state intends to achieve this objective through public procurement and regulatory measures, rather than through direct ownership of a postal and logistics company.
In 2025, the Group generated revenue of €154.7 million and a normalised net profit of €1.4 million.
At the same time, the Universal Postal Service recorded a loss of €2.1 million, while its volume declined by 13% compared with the previous year.
AS Eesti Post is currently 100% owned by the Republic of Estonia and falls under the governance of the Ministry of Regional Affairs and Agriculture.†
Decision to divest
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Why does the state want to divest the company?
In recent years, Omniva’s activities have clearly shifted from traditional postal services towards commerce and logistics services. In 2025, universal postal services accounted for only 5% of total revenue, while most of the profit was generated from foreign markets.
Selling the state’s stake helps ensure the company’s long-term sustainability in a highly competitive logistics and parcel market, as the state has no strategic interest or need to expand further into new foreign markets. In addition, divestment reduces the state’s exposure to business and investment risks.
In summary, four main reasons for divestment can be identified:
attracting investment and improving competitiveness;
long-term development of the company;
improving service quality and efficiency;
enhancing competitiveness.
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Has the decision already been made?
Yes, at its meeting on 2 April 2026, the Government of the Republic decided to sell Aktsiaselts Eesti Post.
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Will the state sell the entire company or only part of it?
The Government decided to sell the entire company, i.e. 100% of the shares.
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Why was a 100% sale chosen instead of another option, such as an IPO?
Different options were analysed during the preparation of the divestment, including listing the company on the stock exchange. The analysis concluded that, at its current stage of development, an IPO is not the most suitable solution.
A stock market listing requires stable and clearly predictable financial results as well as a compelling long-term growth story for investors. Omniva has gone through a more complex period in recent years and is only now restoring stable profitability.
Therefore, it was concluded that bringing in a strategic investor through a full divestment would better support the company’s development and ensure the necessary investments.
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Is Omniva considered a strategically important company?
No. As the designated provider of the universal postal service, Omniva is a provider of a service of general public interest. This means the company delivers a service that is widely used by the public and that must be provided under a legal obligation. This status relates to the public service obligation assigned to the company rather than to the nature of the company itself, and therefore does not make Omniva a strategically important enterprise.
Divestment process
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How will the divestment take place?
The divestment will take place through a public auction open to all participants who meet the established preconditions.
First, documentation concerning the company and its sale will be prepared together with advisors. Then a public auction will be announced. By the end of the auction, interested buyers will submit their bids, from which the highest bidder will be selected. In the final stage, a sale agreement will be concluded with the successful bidder.
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When will the divestment take place?
Exact information will be published through official channels. The public auction is expected to take place in the second half of 2026, and the transaction is planned to be completed during 2027.
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Who will carry out the divestment?
The Ministry of Regional Affairs and Agriculture will contract a qualified legal and financial advisor to assist in carrying out the divestment.
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How does the special audit affect the privatisation process, and vice versa?
The special audit and the privatisation process are not mutually exclusive. The purpose of the special audit is to increase transparency, strengthen risk management and ensure that the company’s governance system complies with best practices. The audit report provides the shareholder with an assessment of how the actions and decisions of the company’s governing bodies have affected its financial performance and financial position.
The special audit provides a clearer understanding of the company’s current situation and the decisions that have been made. It helps build confidence among employees, the state and potential future partners, and its findings are also important in the context of the privatisation process.
The final report of the special audit was published on 28 May 2026 and is available on the
Impact of the divestment
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What are the possible benefits?
Divestment may bring several positive developments for the company and the Estonian economy more broadly:
investments into Estonia;
additional funding for company development;
provision of modern solutions outside Estonia.
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How will the transfer affect state finances?
The state will receive a one-off payment from the sale but will forgo any future dividend income from the company.
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What are the potential risks of the transfer?
One of the main risks is that the new owner may seek to optimize the service network (mailboxes, post offices, parcel machines), which could reduce service accessibility for customers.
How the risk is mitigated: the requirements for universal postal services are set out in law and supervised by the state. The company may independently decide on services in the open market, where strong competition exists, making service disappearance unlikely.
Another risk is that postal service prices may increase under the new market conditions after divestment.
How the risk is mitigated: strong competition in the parcel market and regulatory frameworks limit the extent of price increases.
A third risk is pressure from private capital to cut costs, which could lead to job reductions or restructuring based on the new owner’s strategic focus (e.g. increased emphasis on digitalisation).
How the risk is mitigated: assuming the company continues providing postal and logistics services, it will still require sorting centre workers, parcel couriers, postal workers, and support specialists in the future.
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How will Omniva’s privatisation contribute to balanced regional development, including service availability outside major cities?
Previous privatisations of state-owned enterprises have shown that private ownership often brings a different approach than state ownership, fostering innovation and the adoption of new solutions. This gives Omniva greater flexibility, allowing it to take on larger business risks and accelerate the development and piloting of innovative solutions, benefiting Estonia as a whole.
At the same time, the provision of postal services to the Estonian population under agreed conditions will continue to be safeguarded through the existing regulatory framework.
Future of postal services
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Will postal services continue to be guaranteed after Omniva is sold?
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Yes. Ensuring the provision of postal services is the responsibility of the state. The services currently organised by the state – namely the Universal Postal Service (UPS) and the home delivery of periodicals – will continue to operate under the same principles, as the relevant obligations will transfer to the new owner.
To ensure the continued provision of these services, the state conducts a public tender through the Competition Authority every five years. The next tender will take place in 2029.
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Is there a risk that all post offices will close or that service quality will decline after the change of ownership?
No. The state will remain responsible for shaping postal policy and supervising the quality of the universal postal service.
The quality requirements for the universal postal service, the number of delivery days and other key service standards are established by the Postal Act and related regulations. These requirements ensure that the service remains available regardless of who owns the company. Therefore, privatisation will not affect the quality of the universal postal service, and it will continue to be provided for as long as there is a need for it.
In addition, legislation establishes a minimum number of post offices that the Universal Postal Service provider must maintain. For example, under Regulation No. 67 of the Minister of Economic Affairs and Communications of 10 July 2006, “Requirements for Access Points Used in the Provision of the Universal Postal Service and Their Location”, the service provider must ensure that each county has at least one post office open at least five days a week for a minimum of 25 hours per week.
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How will Omniva’s privatisation contribute to balanced regional development, including service availability outside major cities?
Previous privatisations of state-owned enterprises have shown that private ownership often brings a different approach than state ownership, fostering innovation and the adoption of new solutions. This gives Omniva greater flexibility, allowing it to take on larger business risks and accelerate the development and piloting of innovative solutions, benefiting Estonia as a whole.
At the same time, the provision of postal services to the Estonian population under agreed conditions will continue to be safeguarded through the existing regulatory framework. †
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Will customers face higher postal or parcel delivery prices after the sale?
The prices of the universal postal service are influenced by planned amendments to the Postal Act, not by a change in the company’s ownership – postal service prices are set in accordance with the Postal Act, regardless of whether the service provider is a state-owned or privately held company.
Prices in the parcel service market are already determined by free competition, and this will not change because of privatization or amendments to the Postal Act. †
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Could Omniva’s privatisation reduce competition in the parcel delivery market and lead to higher prices?
No. Parcel delivery is already a highly competitive market with several major postal and logistics companies operating in Estonia. A change in ownership of one company is not expected to have a significant impact on competition or pricing.
If any concerns regarding competition were to arise, the transaction would require approval from the Competition Authority. Therefore, there is no reason to expect a deterioration in parcel delivery services, a reduction in competition or significant price increases.
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Is there a risk that small villages could lose parcel lockers or other services under market conditions?
The courier and parcel locker market is already highly competitive, with multiple service providers actively expanding their networks across Estonia. Omniva already provides parcel delivery services throughout the country under market conditions through both courier services and parcel lockers.
Market-driven changes may occur only in areas where demand is absent or extremely limited. However, given that Omniva has invested in expanding its network of smaller parcel lockers since last year, there is no reason to expect service availability in rural areas to deteriorate.
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Could the number of home delivery days be reduced?
The state considers it important to maintain the current number of delivery days, as any reduction would significantly decrease access to postal services.
Accordingly, five-day home delivery will continue to be guaranteed under the requirements set out in the Postal Act and related regulations. The Ministry also intends to consider universal postal service home delivery together with the distribution of newspapers and magazines. As a result, newspapers and magazines will continue to be delivered to subscribers five days a week.
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Will letters and newspapers eventually be delivered to parcel lockers instead of home mailboxes?
Parcel lockers will become one of several official access points for postal services, alongside post offices, personal mail carriers and individual mailboxes. However, this does not mean that all postal items will automatically be delivered to parcel lockers.
Under the Postal Act, ordinary letter mail and periodicals must continue to be delivered to the recipient’s mailbox unless another arrangement has been agreed. In other words, letters, postcards, newspapers and magazines will continue to be delivered to personal mailboxes by default.
Customers who wish to receive these items via a parcel locker will be able to arrange this separately with Omniva.
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Does Omniva provide any other public services that could be discontinued after privatisation?
Currently, UPS and the associated obligation to deliver periodicals are the only services Omniva provides in the public interest.
UPS obligation also includes a requirement to support home pension deliveries. However, pension delivery services are currently provided under a public procurement contract awarded to AS Hansab in cooperation with Viking Security.
All of Omniva’s remaining postal and parcel services are commercial services provided in the open market, where the state has no strategic interest or obligation to organise them.
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What will happen to the issuance of postage stamps after Omniva is privatised?
The issuance of postage stamps does not depend on whether Omniva is state-owned or privately owned.
Under the Postal Act, the provider of the universal postal service is responsible for issuing and withdrawing postage stamps. Therefore, if a privately owned company were to serve as the universal postal service provider in the future, it would be subject to exactly the same legal obligations regarding postage stamps as a state-owned company.
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Why isn’t the UPS separated from the rest of the company before the sale?
Traditional postal services, including UPS and the delivery of periodicals, increasingly rely on the same infrastructure as the parcel business, creating operational synergies through shared international agreements and logistics networks.
Separating these activities would involve significant one-off costs and, given current service requirements and volumes, would make the provision of the universal postal service even more expensive.
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How will the state continue to oversee postal service quality after privatisation?
The state will continue to perform its regulatory role in the postal sector. It will retain the authority to establish requirements for service quality and accessibility and will continue to supervise compliance with those requirements.
The quality of postal services is currently monitored by the Competition Authority, and this will remain the case after privatisation.
Universal Postal Service (UPS) – home delivery of letters and parcels
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What is the Universal Postal Service (UPS)?
The Universal Postal Service (UPS) covers the domestic and international delivery of letters weighing up to 2 kg and parcels weighing up to 20 kg.
In simple terms, it includes letters sent using postage stamps, as well as postal parcels that are sent from or delivered to post offices.
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Are documents sent by government authorities also part of the UPS?
No. Business mail is not part of the UPS and is provided as a separate service. Business mail is mainly used by public authorities and private-sector organisations that need to send large volumes of documents.
Examples include vehicle registration certificates sent by the Estonian Transport Administration or bank cards sent by banks, both of which are delivered through the business mail service.
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Is the delivery of newspapers and magazines included in the UPS?
Under the current legislation, the home delivery of periodicals is not part of the UPS.
To ensure nationwide delivery of newspapers and magazines, this obligation has been assigned to the UPS provider as an additional public service obligation. The service is currently provided under contracts between Omniva and media publishers.
Under the adopted amendments to the Postal Act, the delivery of periodicals will become part of the UPS in 2028, when the current delivery contracts expire.
As a result, pricing will no longer depend solely on negotiations between the service provider and publishers. Instead, prices will be determined under the pricing rules applicable to the UPS. As with letters and parcels, the Competition Authority will also play a clearer role in overseeing pricing and regulation.
This change is intended to provide subscribers, publishers and the delivery service provider with greater certainty regarding the continuity and long-term sustainability of the service. †
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Are UPS volumes increasing or decreasing?
UPS volumes are steadily declining by approximately 10% per year.
In 2025, the UPS handled 2.8 million items, of which 75% were international shipments. ct. †
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How will the UPS be guaranteed after the change of ownership?
The provision of the UPS is guaranteed under the Postal Act.
The UPS provider is appointed for a five-year period. The most recent public tender was held in 2024, meaning the current provider is obliged to deliver the service until 2029.
In 2028, the Competition Authority will organise a new public tender to appoint the provider for the following five-year period.
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How much will the UPS cost the state after Omniva’s privatisation?
Following the entry into force of the amendments to the Postal Act, the UPS is expected to operate on a cost-based pricing model, meaning that prices will reflect the actual costs of providing the service.
To ensure that prices remain affordable for users, the UPS provider must obtain approval for its pricing from the Competition Authority.
By modernising both the UPS framework and the requirements applicable to its provider, it is expected that prices can remain at a reasonable level, eliminating the need for immediate state financial support.
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What happens if the UPS remains unprofitable? Could a privately owned Omniva decide to stop providing it, and what if no other company wants to take over?
Omniva will continue providing the UPS under the terms agreed with the state until the current agreement expires on 8 October 2029.
Before the agreement expires, the Competition Authority will organise a public tender to select the next UPS provider.
If, hypothetically, no company submits a bid, the Postal Act authorises the Competition Authority to require the current provider to continue delivering the service for another five-year period.
As a result, the provision of the UPS is guaranteed, and a new owner of Omniva cannot simply decide to discontinue it. The necessary obligations will also be incorporated into the sale agreements. †
Periodicals – home delivery of newspapers and magazines
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How will the delivery of newspapers and magazines be guaranteed after the change of ownership?
The delivery of periodicals is a statutory additional obligation assigned to the provider of the UPS.
Under the adopted amendments to the Postal Act, the home delivery of periodicals will become part of the UPS in 2028. This change creates a clearer legal framework for Omniva’s privatisation by providing potential buyers with a clear understanding of the obligations associated with the service.
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Are documents sent by government authorities also part of the UPS?
No. Business mail is not part of the UPS and is provided as a separate service. Business mail is mainly used by public authorities and private-sector organisations that need to send large volumes of documents.
Examples include vehicle registration certificates sent by the Estonian Transport Administration or bank cards sent by banks, both of which are delivered through the business mail service.
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How is the delivery of periodicals regulated, and how could privatisation affect this service?
The obligation to deliver newspapers and magazines is established by the Postal Act and assigned to the UPS provider. Consequently, regardless of ownership, the UPS provider must continue delivering periodicals in accordance with the law and the existing contractual arrangements.
As with the UPS itself, it is important that potential buyers are fully aware of these obligations and that the rights and responsibilities of all parties are clearly set out in the sale agreements.
Under the adopted amendments to the Postal Act, the delivery of periodicals will become part of the UPS in 2028. This means that pricing will no longer depend solely on negotiations between the service provider and media publishers. Instead, prices will be determined under the pricing rules applicable to the UPS, and the Competition Authority will assume a clearer role in overseeing both the pricing model and regulatory compliance.
In addition, amendments to the Postal Act provide the state with a clearer legal basis for defining service requirements. This is intended to ensure continuity and long-term certainty for subscribers, media publishers and the delivery service provider.
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Will Omniva’s privatisation increase the cost of newspaper and magazine delivery?
The prices for newspaper and magazine delivery are fixed under a long-term agreement between Omniva and media companies until 2028. In addition, the state subsidises periodical delivery in rural areas – for example, providing €1.5 million in funding in 2026.
A change in ownership does not, in itself, lead to higher delivery costs, as the existing agreements and obligations will transfer to the new owner. However, other factors – such as rising fuel prices or increasing labour costs for postal workers – could contribute to future price increases.
Furthermore, as provided for in the adopted amendments to the Postal Act, the delivery of periodicals will become part of the UPS in 2028.
Related links
News: The privatization of Omniva will be advised by Superia, Redgate Capital, and Ellex Raidla
News: The Government of Estonia has decided to start preparing Omniva’s privatisation
Estonian Competition Authority
