UK’s Royal Mail owner accepts a takeover bid from Czech billionaire

The 500-year-old postal service in UK was privatised the government in 2013. Representation Pic

The owner of Britain's Royal Mail said on Wednesday it has accepted a 3.6 billion pound (USD 4.6 billion) takeover offer from Czech investor Daniel Kretínský. Under the deal, Kretínský's EP Group would buy International Distribution Services, which owns Royal Mail, for 370 pence (USD 4.72) per share.

Including debt, the deal values IDS at 5.2 billion pounds (USD 6.6 billion). It said EP Group would offer a series of "contractual commitments and intentions" to protect public service aspects of the 500-year-old postal service. Long state-owned, Royal Mail was privatised by the UK's Conservative government in 2013 and has struggled financially.

Kretínský, who already holds a 27 per cent stake in the Royal Mail's 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's, Foot Locker and UK supermarket chain Sainsbury's. He also owns a stake in Premier League soccer team West Ham.

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