While a decision to sell BPO has not been set in concrete, and could be some weeks away, it is understood Salmat has been talking to a number of domestic and international trade buyers.

Salmat’s board has identified a range of potentially interested parties and is trying to find out what they would be willing to pay for BPO before potentially launching an official sales process.

Salmat’s BPO unit is the country’s largest printer and distributer of bills and statements, and has contracts with the major banks, telecommunications companies and utilities providers to print and distribute communications on their behalf.

BPO made up about 40 per cent of Salmat’s earnings in the 2011 financial year and reported underlying earnings before interest, tax and amortisation of $21.5m in the first half of fiscal 2012, on revenue of $158.6m.

Some analysts and investors fear there is limited growth potential in BPO’s essential mail services, given the significant structural shift to electronic distribution and marketing.

Grant Harrod, CEO of Salmat was unavailable for comment.

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