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The proprietor of the Royal Mail stated it will be ready to advocate a £5bn takeover bid from Czech billionaire Daniel Křetínský, so long as a number of situations safeguarding the group’s future are met.
Worldwide Distribution Providers, the proprietor of Royal Mail, stated on Wednesday that Křetínský’s EP Group had raised its bid to 370 pence a share from 320p, which IDS rejected final month.
Together with debt, the improved bid values London-listed IDS at £5bn, up from £4.5bn within the first bid. In addition to the previous UK postal monopoly, IDS owns the fast-growing Netherlands-based parcels enterprise GLS.
“The Board is minded to advocate this provide value, which it considers to be honest,” stated Keith Williams, the chair of IDS, including that EP Group had agreed to a number of undertakings that “recognise Royal Mail’s standing as a key a part of nationwide infrastructure”.
The undertakings embody persevering with six-day-a-week supply of top quality letters, maintaining the group’s headquarters within the UK and preserving the funding grade credit standing of IDS.
IDS stated that its “board will proceed to have interaction with EP Group to hunt to succeed in settlement on the precise scope and length of such undertakings”.
Since Křetínský’s first proposal was rejected final month, the 2 sides have been in talks over an improved bid.
Křetínský, a lawyer-turned-energy tycoon, is the most important shareholder in IDS, with a 27.5 per cent stake. His different UK investments embody a stake in grocery store chain J Sainsbury and London soccer membership West Ham United.
EP Group now has till Could 29 to make a agency provide for IDS below UK guidelines governing takeover bids for public corporations.
