The owner of Britain’s Royal Mail said on Wednesday it had accepted a 3.6 billion pound ($4.6 billion) takeover bid from Czech investor Daniel Křetínský.
Under the agreement, Křetínský’s EP Group will acquire Royal Mail’s International Distribution Services for 370 pence ($4.72) per share.
Including debt, the deal values IDS at 5.2 billion pounds ($6.6 billion).
It is said EP Group will provide a series of “contractual commitments and intentions” to protect the public service aspect of the 500-year-old postal service.
The long-state-owned Royal Mail was privatized by Britain’s Conservative government in 2013 and has fallen into financial troubles.
“Royal Mail is the most British of all,” Jonathan Reynolds, shadow secretary of state for business and trade and member of parliament, wrote in a letter to EP Group on 15 May. “Labour will take the necessary steps to safeguard its undeniable identity and place in public life.”
IDS said no layoffs are planned in the deal, which must be approved by shareholders. Under the plan, Royal Mail will retain its name, brand, UK headquarters and six-day-a-week mail delivery obligations.
Křetínský already holds a 27% stake in the Royal Mail parent company and has huge business interests covering all of Europe. In the Czech Republic he owns a book publishing house, sports daily and magazine, and co-owns the French newspaper Le Monde. He has stakes in companies including Macy’s, Foot Locker and British supermarket chain Sainsbury’s.
He also owns shares in Premier League team West Ham United.
Krzetinski said his company “has the utmost respect for the history and tradition of Royal Mail and I know that owning this company comes with huge responsibilities – not just for its employees but for the citizens who rely on its services every day.” .
Dave Ward, general secretary of the Communications Workers Union, said he welcomed some of the pledges but added: “The reality is that postal workers across the UK have lost all hope for Royal Mail’s senior management.” “Confidence that the service has been deliberately degraded.”
He said: “We will meet with EP Group next week to call for a complete reset of staff and industrial relations, the restoration of the postal service and further commitments to the future of the company.”
