The Czech energy and media billionaire, who is the main shareholder of West Ham, is in talks about a possible takeover of Royal Mail. Shares of International Distributions Services (IDS), the owner of Royal Mail, soared by 18%. Royal Mail's estimate was 2.4 billion pounds, after Daniel Krzetinski confirmed this strategy. This is stated in the media reports.
EP Group stated that it had "submitted a non-binding indicative proposal to the IDS Board of Directors in order to obtain recommendations regarding a possible cash offer."
Although this proposal was initially rejected by the IDS board, negotiations are ongoing. Via Vesa Equity investment Krzhetinsky is already the largest shareholder of IDS with a 27.5% stake. In addition to Royal Mail, EP Group also owns a Dutch parcel delivery business called GLS.
This comes at a time of huge challenges for Royal Mail, which dates back more than 500 years, but its core business of sending letters is in rapid decline. The Government recently held consultations on plans to reduce the number of delivery days.
Any takeover of Royal Mail, which was privatized between 2013 and 2015, especially by a foreign buyer, would be highly controversial.
The EP Group said in a statement that it "recognizes that Royal Mail is in a difficult situation. Weak financial performance, poor service provision and slow transformation amid structural changes in the market have put the business under unsustainable pressure. In the face of growing competition from multinational companies in the UK postal market, private investment in Royal Mail is becoming crucial.
"EP Group also recognizes that Royal Mail is an important national asset that will benefit from the opportunity to take a long-term view, and is ready to support this iconic business as it transforms and rebuilds into a modern postal operator providing high-quality services to its customers, the stability of its workforce and sustainable financial performance."
Royal Mail
