Royal Mail owner International Distribution Services (IDS) will be taken over after agreeing a £3.57 billion deal with Czech billionaire Daniel Kretinsky.
Mr Kretinsky’s EP Group vehicle, which already owns 27.6 per cent of the business, made a formal offer for the business after initial proposals earlier this month.
The deal will see EP pay 370p per share to investors in IDS.
Shareholders will vote on the deal at IDS’s next annual general meeting in September.
IDS said the offer would see Royal Mail continue its universal service obligation to one-price-goes-anywhere first class post six days a week, and keep the company’s branding and UK headquarters.
It also said it would protect existing employment rights of all IDS staff, and that there is “no intention to make any material changes to overall headcount or reductions in the number of front-line workers” beyond existing plans.
The board said the offer reflects “the progress being made on change at Royal Mail, as well as the execution risks associated with delivering longer term value for shareholders in light of uncertainty over the nature and timing of universal service reform and the need for swift and significant strategic investments”.
Keith Williams, chairman of IDS, said: “IDS has the potential to become a leading international logistics player.
“Both the IDS board and EP are acutely aware of their responsibilities to IDS and particularly to the unique heritage of Royal Mail and its obligations as the designated Universal Service Provider of postal services in the UK.
“The IDS Board has negotiated a far-reaching package of legally binding undertakings and commitments which provide our customers, employees and broader stakeholders with important safeguards.
“These cover the provision of the one-price-goes-anywhere Universal Service Obligation (including First Class letters still delivered six days a week), the financial stability and maintenance of the IDS Group including Royal Mail, the maintenance of employee benefits and pensions, and ensuring Royal Mail remains headquartered and tax resident in the UK.”
This is a breaking news story…more follows…
