Royal Mail Owner IDS Rejects Takeover Bid from Czech Billionaire Daniel Křetínský
Quote from VATcal on 17/04/2024, 20:08International Distribution Services (IDS), the parent company of Royal Mail, has rejected a proposed takeover bid from a group led by Czech billionaire Daniel Křetínský. The news, made public on April 17th, sent IDS shares soaring as investors anticipated a potential bidding war.
EP Group, controlled by Křetínský, confirmed they submitted a non-binding cash offer earlier in April to acquire the remaining shares in IDS that they don't already own. Křetínský, already the largest shareholder in IDS with a 27.5% stake through his investment vehicle Vesa Equity Investment, is no stranger to British businesses. He also holds stakes in West Ham United Football Club and supermarket chain Sainsbury's.
According to a statement by EP Group, their offer was deemed "significantly undervalued" by the IDS board, who unanimously rejected it on April 11th. IDS also called the timing of the proposal "opportunistic".
Despite the initial rejection, EP Group remains interested in acquiring IDS. They stated their intention to "continue to engage constructively with the Board as EP Group considers all its options." This suggests that a revised bid or further negotiations could be forthcoming.
The news of the rejected bid comes at a challenging time for Royal Mail. The company has faced industrial disputes with postal workers and been fined for missing delivery targets. However, the potential takeover interest has buoyed IDS's share price, suggesting that investors believe a successful bid could unlock future value.
It remains to be seen whether Křetínský will return with a new offer or if another bidder will emerge. The future ownership of Royal Mail is set to be a topic of continued interest in the coming weeks and months.
International Distribution Services (IDS), the parent company of Royal Mail, has rejected a proposed takeover bid from a group led by Czech billionaire Daniel Křetínský. The news, made public on April 17th, sent IDS shares soaring as investors anticipated a potential bidding war.
EP Group, controlled by Křetínský, confirmed they submitted a non-binding cash offer earlier in April to acquire the remaining shares in IDS that they don't already own. Křetínský, already the largest shareholder in IDS with a 27.5% stake through his investment vehicle Vesa Equity Investment, is no stranger to British businesses. He also holds stakes in West Ham United Football Club and supermarket chain Sainsbury's.
According to a statement by EP Group, their offer was deemed "significantly undervalued" by the IDS board, who unanimously rejected it on April 11th. IDS also called the timing of the proposal "opportunistic".
Despite the initial rejection, EP Group remains interested in acquiring IDS. They stated their intention to "continue to engage constructively with the Board as EP Group considers all its options." This suggests that a revised bid or further negotiations could be forthcoming.
The news of the rejected bid comes at a challenging time for Royal Mail. The company has faced industrial disputes with postal workers and been fined for missing delivery targets. However, the potential takeover interest has buoyed IDS's share price, suggesting that investors believe a successful bid could unlock future value.
It remains to be seen whether Křetínský will return with a new offer or if another bidder will emerge. The future ownership of Royal Mail is set to be a topic of continued interest in the coming weeks and months.
