Czech Billionaire Sweetens Bid for Royal Mail Owner to £3.5 Billion pen_spark
Quote from VATcal on 15/05/2024, 20:28Czech billionaire Daniel Kretinsky has tabled a revised offer to acquire International Distributions Services (IDS), the parent company of Royal Mail. The increased bid of 370 pence per share values IDS at £3.5 billion, following an earlier rejected offer of 320 pence per share last month.
The IDS board chair, Keith Williams, indicated a positive reception to the improved offer. In a statement to investors, he said the board is "minded to recommend" the offer, considering it "fair" and reflective of "the progress being made at Royal Mail to adapt the business to a significant fall in the demand for letters and growth in parcels."
This potential takeover has significant implications for the future of Royal Mail, a British institution with a 500-year legacy. If successful, the deal would see Royal Mail taken off the stock market, just under eleven years after its privatisation.
Kretinsky's increased offer comes amidst Royal Mail navigating a challenging landscape. The company is grappling with a decline in traditional letter deliveries due to the rise of electronic communication. However, this decline is counterbalanced by a surge in e-commerce, leading to a significant growth in parcel deliveries.
The Czech businessman, nicknamed the "Czech Sphinx" for his secretive nature, already owns a 27.5% stake in IDS. He is also known for his co-ownership of West Ham United football club and a stake in supermarket chain Sainsbury's.
The future of Royal Mail now hinges on the approval process. Kretinsky's bid is non-binding, and a final decision rests with IDS shareholders. If approved, the deal would mark a significant shift for Royal Mail, potentially bringing it under the control of a foreign billionaire.
Czech billionaire Daniel Kretinsky has tabled a revised offer to acquire International Distributions Services (IDS), the parent company of Royal Mail. The increased bid of 370 pence per share values IDS at £3.5 billion, following an earlier rejected offer of 320 pence per share last month.
The IDS board chair, Keith Williams, indicated a positive reception to the improved offer. In a statement to investors, he said the board is "minded to recommend" the offer, considering it "fair" and reflective of "the progress being made at Royal Mail to adapt the business to a significant fall in the demand for letters and growth in parcels."
This potential takeover has significant implications for the future of Royal Mail, a British institution with a 500-year legacy. If successful, the deal would see Royal Mail taken off the stock market, just under eleven years after its privatisation.
Kretinsky's increased offer comes amidst Royal Mail navigating a challenging landscape. The company is grappling with a decline in traditional letter deliveries due to the rise of electronic communication. However, this decline is counterbalanced by a surge in e-commerce, leading to a significant growth in parcel deliveries.
The Czech businessman, nicknamed the "Czech Sphinx" for his secretive nature, already owns a 27.5% stake in IDS. He is also known for his co-ownership of West Ham United football club and a stake in supermarket chain Sainsbury's.
The future of Royal Mail now hinges on the approval process. Kretinsky's bid is non-binding, and a final decision rests with IDS shareholders. If approved, the deal would mark a significant shift for Royal Mail, potentially bringing it under the control of a foreign billionaire.
