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Czech billionaire Daniel Křetínský has agreed to buy the owner of Royal Mail in a deal valuing the former UK postal monopoly at £5.2bn, and declared that the group must accelerate its transformation.
Křetínský’s EP Group has agreed to pay 370 pence a share for International Distribution Services, the London-listed parent company of Royal Mail. Including IDS’s debt, the deal values the group at £5.2bn.
EP Group and IDS have spent the past few weeks hammering out the details of a deal for one of the UK’s best-known companies, but which has been beset by strikes and the burden of having to deliver letters at a set price across the country.
Under the terms of the transaction, EP Group promised to preserve service levels and maintain the company’s UK headquarters.
In a statement, Křetínský said that “IDS’ market is evolving quickly, and it must accelerate its transformation and investments into modernisation to keep up with the competition”.
As well as Royal Mail, IDS also owns the fast-growing Netherlands-based parcels business GLS. The recommended offer comes just days after IDS said GLS had helped the group return to profit in the 12 months to March.
“The IDS board believes that the offer from EP is fair and reasonable given that there are uncertainties ahead and allows investors to realise value at a significant premium,” said IDS chair Keith Williams.
Křetínský is already the largest shareholder in IDS with a 27.5 per cent stake. A lawyer-turned-energy tycoon, he also owns stakes in supermarket chain J Sainsbury and English Premier League football club West Ham United.