The sale of Royal Mail to Czeck billionaire Daniel Křetínský has been approved with a smidge over 80% of shareholders in favour. The offer to acquire outstanding shares is now unconditional meaning the deal will go ahead.
It is expected that Royal Mail will cease to trade on the London Stock Exchange by the 2nd of June at the latest as the company is taken into ownership of EP UK Bidco Limited. The business founded by King Henry VIII in 1516 will then be effectively in foreign ownership for the first time in over 500 years.
Martin Seidenberg, the Chief Executive Officer of the IDS Group, and Michael Snape, the Chief Financial Officer of the IDS Group, keep their jobs (at least for now), while the entire board of non-executive directors of IDS (Keith Williams, Sarah Hogg, Maria da Cunha, Michael Findlay, Lynne Peacock, Shashi Verma, Jourik Hooghe and Ingrid Ebner) are expected to resign with EP to appoint their own replacements.
We are delighted to have secured the overwhelming support of IDS’ shareholders for our offer. EP Group is a patient, committed investor and we believe the pathway to success for IDS lies in taking a truly long-term view of the future, putting employees and customers at the heart of everything IDS does, supporting the investments needed to deliver high quality services and products and in sharing the fruits of success with employees. I would like to thank Keith, Martin and the entire IDS Board and management team for the contributions they have made to IDS, GLS and Royal Mail. We are looking forward to working alongside Martin and his team to continue improving service quality, innovating for customers and growing the business. I would also like to thank the unions for the constructive approach they have taken to engaging with us throughout this process. Employees are at the centre of our plans for the business and we know we will only succeed with a clear, shared vision for the future that we can all work towards.
– Daniel Křetínský, founder and chairman, EP
I would like to thank Royal Mail and GLS colleagues around the world for their collective efforts to transform our businesses to better meet the needs of customers today, and the future. The IDS Board believes that with continued investment in strategic areas such as the network and out-of-home solutions, IDS has the potential to become a leading international logistics player, building on the progress already made by these two great businesses.
Both the IDS Board and EP are acutely aware of the unique heritage of Royal Mail. We have been pleased to secure a far-reaching package of legally binding undertakings and commitments, which have been endorsed by Government. These provide our customers, colleagues and broader stakeholders with safeguards for the provision of the Universal Service Obligation, the ongoing financial stability of Royal Mail, the maintenance of colleague benefits, and Royal Mail’s broader role in the United Kingdom. Now that the offer is unconditional our shareholders will be able to realise value at a significant premium.
– Keith Williams, Chair, IDS
One Response
Am sure the management of Royal mail will walk away with a pretty penny
The new owner will give it a year the Government guarantees are worthless and he will shred it.