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The owner of Britain\u2019s Royal Mail said Wednesday it has accepted a 3.6 billion pound ($4.6 billion) takeover offer from Czech investor Daniel K\u0159et\u00ednsk\u00fd.<\/p>\n
Under the deal, K\u0159et\u00ednsk\u00fd\u2019s EP Group would buy International Distribution Services, which owns Royal Mail, for 370 pence ($4.72) per share.<\/p>\n
Including debt, the deal values IDS at 5.2 billion pounds ($6.6 billion).<\/p>\n
It said EP Group would offer a series of \u201ccontractual commitments and intentions\u201d to protect public service aspects of the 500-year-old postal service.<\/p>\n
Long state-owned, Royal Mail was privatized by the U.K.\u2019s Conservative government in 2013 and has struggled financially.<\/p>\n
\u201cRoyal Mail is as British as it gets,\u201d Jonathan Reynolds, the shadow secretary of state for business and trade and member of Parliament, wrote in a May 15 letter<\/a> to EP Group. \u201cLabour will take the necessary steps to safeguard its undeniable identity and place in public life.\u201d<\/p>\n IDS said no major job losses were planned as part of the deal, which must be approved by shareholders. Under the plan, Royal Mail would maintain its name, branding, U.K. headquarters and obligation to six-day-a-week mail delivery.<\/p>\n K\u0159et\u00ednsk\u00fd, who already holds a 27% stake in the Royal Mail\u2019s parent company, has a vast, Europe-wide portfolio of business interests. In the Czech Republic, he owns book publishing houses, a sport daily and magazines, and he co-owns French newspaper Le Monde. He has stakes in companies including Macy\u2019s, Foot Locker and U.K. supermarket chain Sainsbury\u2019s.<\/p>\n He also owns a stake in Premier League soccer team West Ham.<\/p>\n K\u0159et\u00ednsk\u00fd said his company \u201chas the utmost respect for Royal Mail\u2019s history and tradition, and I know that owning this business will come with enormous responsibility -\u2013 not just to the employees but to the citizens who rely on its services every day.\u201d<\/p>\n Dave Ward, general secretary of the Communication Workers Union, said he welcomed some of the commitments, but added that \u201cthe reality is postal workers across the U.K. have lost all faith in the senior management of Royal Mail and the service has been deliberately run down.\u201d<\/p>\n \u201cWe 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,\u201d he said.<\/p>\n<\/div>\nSubscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up<\/a> for free.<\/div>\n