Owner of British company Royal Mail says he accepted takeover offer from Czech billionaire

LONDON (AP) — The owner of Britain’s Royal Mail said Wednesday it has accepted a 3.6 billion pound ($4.6 billion) buyout offer from Czech investor Daniel Křetínský.

Under the terms of the deal, Křetínský’s EP Group would buy Royal Mail owner International Distribution Services for 370 pence ($4.72) per share.

Including debt, the deal values ​​IDS at 5.2 billion pounds ($6.6 billion).

He said the EP Group would put forward a series of “contractual commitments and intentions” to protect the public service aspects of the 500-year-old postal service.

Royal Mail, long state-owned, was privatized by Britain’s Conservative government in 2013 and is experiencing financial difficulties.

IDS said no major job cuts were planned as part of the deal, which must be approved by shareholders. Under the plan, Royal Mail would retain its name, branding, UK headquarters and requirement to deliver mail six days a week.

Křetínský, who already owns a 27% stake in Royal Mail’s parent company, has an extensive portfolio of European-wide business interests. In the Czech Republic, he owns book publishing houses, a sports daily and magazines, and he is co-owner of the French newspaper Le Monde. It has stakes in companies including Macy’s, Foot Locker and British supermarket chain Sainsbury’s.

He also has a stake in Premier League football team West Ham.

Křetínský said his company “has the greatest respect for the history and tradition of Royal Mail, and I know that owning this company will carry a huge responsibility – not only to the employees but to the citizens who rely on its every day. services “.

Dave Ward, general secretary of the Communication Workers Union, said he welcomed some of the commitments, but added that “the reality is that postal workers across the UK have lost all confidence in senior management at Royal Mail and the service was deliberately dilapidated. .”

“We will meet with the EP Group next week and call for a complete reset of social and industrial relations, the restoration of postal services and new commitments on the future of business,” he said.

The Associated Press