The owner of Royal Mail said he is “considering” accepting a revised takeover offer from Czech billionaire Daniel Kretinsky.
The latest offering from Mr. Kretinsky’s investment firm EP Group values the Royal Mail parent company International Distribution Services (IDS) for £3.5 billion.
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Mr. Kretinsky’s company already owns the majority of IDS as a 27.6% shareholder, but intends to buy the remaining shares.
A previous offer of £3.20 per share had been rejected last month because it is too low.
But now he has offered to pay £3.60 for each share. The day before the original offer, a share in IDS cost £2.14.
An extra payment to shareholders of 8 pence per share has been offered by EP Group if the deal goes through, as well as a payment of 2 pence per share to each interested party, which is due in September.
This would bring the total value of an IDS share to 73% more than it cost before the prospect of a takeover arose.
‘Good value’
“Having considered the proposal, the board has indicated to the EP Group that it would be interested in recommending an offer to IDS shareholders,” the IDS board said.
The price is “fair” and reflects the value of current growth plans, said the president of IDS.
Royal Mail could deliver letters just three days a week under a series of options outlined by the industry regulator.
The board considered the national importance of Royal Mail as an operator of the postal network.
“The board is particularly mindful of Royal Mail’s unique heritage and responsibilities as the UK’s designated universal service provider and a key part of the national infrastructure,” he said.
In assessing the proposal, the board was also very mindful of the impact on Royal Mail and GLS and their respective stakeholders and employees, as well as wider public interest factors.”
Grupo PE has until May 29th to advance or withdraw its takeover bid.
Who is it Daniel Kretinsky?
There has already been close scrutiny of Kretinsky’s partial stake in the postal company, but a review of the government’s national security concerns about its investment has not led to any intervention.
He also owns parts of West Ham Football Club and Sainsbury’s.
The EP Group, which it controls, has financial interests in energy, logistics and food retail.
Political reaction
Labor called for Royal Mail to remain domiciled in the UK, paying taxes and maintaining its headquarters here.
Shadow Business Secretary Jonathan Reynolds wrote to Mr Kretinsky asking him to work closely with the Communication Workers Union to build a sustainable Royal Mail and whether the Royal is intended to remain the universal service provider.
This story originally appeared on News.sky.com read the full story
