Royal Mail parent (IDS) to be taken over by Czech billionaire Kretinsky £3.5-B deal

Royal Mail is set to be acquired by Czech billionaire Daniel Kretinsky after the board of its parent company, International Distributions Services (LON:IDS), accepted a £3.5 billion takeover offer.

Invezz reported on the speculation on May 28.

The offer, recommended by the IDS board on Wednesday, values the company at 370p per share.

Breakdown of the offer: £5.28 billion including debt

The takeover bid consists of 360p in cash per share, plus a final dividend of 2p per share and a special dividend of 8p per share.

Including the company’s debt, the total value of IDS is pegged at £5.28 billion.

The offer is expected to undergo scrutiny on national security grounds, given the strategic importance of Royal Mail.

Legally binding commitments on public interest

To address potential concerns, the bid includes a series of legally binding commitments focused on public interest issues.

Key undertakings include maintaining the universal service obligation, ensuring that first-class letters are delivered at the same price nationwide, and continuing Saturday deliveries.

Daniel Kretinsky has also pledged to preserve jobs, safeguard the Royal Mail brand, and keep the company headquartered and tax-resident in the UK.

These commitments are set to remain in effect for at least five years following the deal’s completion, which is contingent upon shareholder approval.

Shareholders to vote on the takeover offer

The proposed acquisition now awaits approval from IDS shareholders. If approved, it would mark a significant shift for Royal Mail, a historic institution in the UK.

The deal underscores the strategic importance of the postal service and its role in national infrastructure.