Royal Mail sold in £3.6bn takeover deal

manchestereveningnews.co.uk:

Royal Mail parent firm International Distribution Services (IDS) said its board of directors has agreed to a £3.57 billion takeover offer from Czech billionaire and shareholder 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 announced on Wednesday 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. READ MORE: "We just want to get mum home": Family's urgent appeal after mum found covered in blood in Turkey hotel room 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.” 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.