Under the deal, EP Group of Czech investor Daniel Křetínský will buy International Distribution Services, which owns Royal Mail, for 3.6 billion pounds.
According to AP News, Křetínský would buy the company for 370 pence ($4.72) per share. Including debt, the IDS deal is worth 5.2 billion pounds ($6.6 billion).
EP Group will offer a series of “contractual commitments and intentions” to protect the public service aspects of the 500-year-old postal service. The Royal Mail, long publicly owned, was privatised by the UK’s Conservative government in 2013. Since then, it has struggled financially.
IDS stated that it planned no major job cuts as part of the deal, which was subject to shareholder approval. Under the plan, Royal Mail will retain its name, branding, UK headquarters and commitment to delivering mail six days a week.
Křetínský has an extensive portfolio of business interests across Europe. In the Czech Republic, he owns book publishers, a sports daily and magazines. He is also co-owner of the French newspaper Le Monde. Moreover, he has stakes in Macy’s, Foot Locker and the British supermarket chain Sainsbury’s.
Dave Ward, general secretary of the Communication Workers Union, stated that he welcomed some of the commitments. However, he added that “the reality is postal workers across the UK have lost all faith in the senior management of Royal Mail and the service has been deliberately run down.”
We will meet with EP Group next week and call for a complete reset in employee and industrial relations, the restoration of postal services and further commitments on the future of the company.
