The takeover of Royal Mail has edged closer after its owner agreed terms and conditions on a £3.57bn takeover bid by the Czech billionaire Daniel Křetínský.
In an update to the market on Wednesday, the postal service’s parent company, International Distributions Services (IDS), said it had accepted a cash offer from Křetínský’s EP Group.
The deal means Křetínský, who currently owns more than 27% of IDS, pays 360p a share for the struggling postal service.
EP had until 29 May to formally submit its £3.57bn bid, which was improved from an earlier £3.1bn offer that IDS had said “significantly undervalues” the company, or walk away from a takeover for six months.
The deal can still be scrutinised and blocked by the business secretary, Kemi Badenoch, under the National Security and Investment Act.
EP is expected to present a series of undertakings to the government, including pledges not to make compulsory redundancies or split up the group, which also includes the international parcels arm GLS.
Last week, IDS bosses met Badenoch, to discuss the bid and reforms to the USO.
More details soon …
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