ROYAL MAIL: Takeover offer from Czech billionaire
Photo credit: Flickr/Bazzadarambler
Royal Mail’s owner International Distributions Services (IDS) has received a takeover offer for the beleaguered postal service from Czech billionaire, Daniel Kretinsky.
His EP Group, with holdings in Sainsbury’s and West Ham United football club, issued a statement on April 17 which, without mentioning the sums involved, revealed that Kretinsky had approached IDS on April 9.
“While EP Group’s proposal was rejected by the Board of IDS, it looks forward to continuing to engage constructively with the board as EP Group considers all its options,” the communique announced.
This went on to say that the EP Group viewed the UK as “an attractive and dynamic market for investment” and was proud to support the businesses in which it invested. These include Royal Mail through EP Group-owned VESA Equity, which has a 27.6 per cent stake in IDS.
“EP Group recognises that Royal Mail is in a challenging situation,” the statement admitted, pointing out that increasing competition from multinational companies in the UK postal market, private investment in Royal Mail becomes crucial.
As news of Kretinsky’s proposal reached the media on April 27, IDS shares rose by 20 per cent to 257p (€3) valuing the company at £2.47 billion (€2.89 billion).
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