Royal Mail has been sold to a Czech billionaire for £3.57bn.
International Distribution Services said it has agreed to the multi-billion pound takeover offer from Daniel Kretinsky’s EP Group.
The firm, which already owns 27.6% of the business, made a formal offer for Royal Mail after initial proposals earlier this month.
The deal will see EP pay 370p per share to investors in International Distribution Services (IDS).
Shareholders will vote on the deal at IDS’s next annual general meeting in September.
Keith Williams, chairman of IDS, said the deal would give the company the potential to “become a leading international logistics player”.
He said: “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.”
The company’s 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”.
Mr Kretinsky has been nicknamed the ‘Czech Sphinx’, reportedly due to his enigmatic nature and reluctance to speak in public, and also owns parts of West Ham United Football Club and Sainsbury’s.
His company has insisted the deal will protect the employment rights of all IDS staff and that there was “no intention to make any material changes to overall headcount or reductions in the number of front-line workers” as a result of the deal.
It is expected that the deal will come under scrutiny from regulators.
