Royal Mail set to be taken over by Czech billionaire for £3.5bn

https://www.telegraph.co.uk/business/2024/05/15/royal-mail-minded-to-accept-35bn-takeover-offer/

by GPwat

22 comments

  1. > Mr Williams said: “The board is minded to recommend this offer price, which it considers to be fair and reflects the value of GLS’ current growth plans and the progress being made on change at Royal Mail to adapt the business to a significant fall in the demand for letters and growth in parcels.”

    > Redwheel, one of IDS’s largest investors, previously supported the board’s decision to reject Mr Kretinsky’s initial takeover bid.

    > It has argued that GLS alone is worth 350p per share, meaning that under the terms of the improved bid Royal Mail would be worth just 20p per share – or £192m – not even big enough to get into the FTSE 350.

    > Shares in IDS surged as much as 20pc to 327p following the revised offer proposal, which came just three hours before a deadline imposed under City takeover rules.

    > Mr Kretinsky, who is also an investor in West Ham Football Club and Sainsbury’s, is already the largest shareholder in IDS with a stake of more than 27pc.

    > His swoop has proven controversial given the sensitive nature of the postal service.

    > Sir Vince Cable, who oversaw the privatisation of Royal Mail in 2013, has called on ministers to carry out a fit and proper person test on Mr Kretinsky.

    > The Czech sphinx was previously subject to a national security investigation when he increased his stake in the company above 25pc in 2022, though this was ultimately approved.

    > A government spokesman said: “We recognise the importance of the Royal Mail to the British public, and we are monitoring these developments very closely.

    > “Our priority is to ensure that Royal Mail customers get the service they deserve, including six days-a-week deliveries and a guaranteed standardised price for post throughout the UK, as enshrined by the universal service obligations, regardless of the owner.

    > “We will engage with the bidder at an appropriate time to explain our expectations for the future of Royal Mail.”

    > In a letter to Mr Kretinsky on Wednesday, Jonathan Reynolds, the shadow business secretary, asked the tycoon to confirm that Royal Mail would remain headquartered and tax resident in the UK, as well as calling for guarantees around postal workers’ rights.

    > He wrote: “Whilst it’s important that Britain remains open and attractive to foreign investment, Royal Mail is an iconic British institution with a unique place in our society and infrastructure.

  2. Literally selling out their country’s mail service. Do conservatives even have any shame?

  3. After Royal Mail, next in line for privatization will be Royal Pair.

    Charles III will be auctioned to highest bidder.

  4. That’s it if it’s approved, I reckon we will lose the postal service as we know it. Before long we will have to collect our post from local centres.

    A service like mail should be country owned, service should be the priority, not profit.

    The Tories would literally sell their fucking grannies if there was a quid to be made.

  7. Yes, sell everything! Privatise the NHS next. Thatcher would be proud.

    Fuck the Tories.

  9. Only public thing I wish to see privatised is the Crown

  10. Yay, more essential infrastructure in the hands of “our European partners”. That’s certainly gone well with the trains, and the water companies, and the gas and electricity production.

  11. Great! Can he please buy Canada Post as well, and put paid to their ceaseless whinging?

  12. This happened in Portugal a few years ago and even the most liberal people agree that it was a tremendous mistake. Service went to shit, prices went up, as expected. The fact that not even the US privatized its postal service should tell you somehting.

  13. As a Brit who emigrated to the CR, our reverse takeover plan is taking shape 😅

  14. Good for you 🙂 i wish something similar happened here in Czechia 🙂

  16. Today, millions of England’s citizens are angrily asking how one cheque could have been used to take over Royal Mail. Tomorrow, the top question asked across the Sceptred Isle will be: “What’s a Cheque Republic”?

  18. Wait can we not afford £3.5bn for the UK government to buy it back ourselves ?

  19. Hooray. Another British utility in foreign hands. I do not foresee any issues with this at all as I’m sure he has the British public’s interest very close to his heart.

  20. He’s buying a bit of key UK infrastructure, so its safe to assume he’s as corrupt as they come and has ties to Russia.

  21. Privatisation it essential services that are more or less part of infrastructure won’t work. It won’t get cheaper for the customers (which was always promised in the hayday of neoliberalism) and it all slowly goes to shit because you won’t want to invest.

    Stuff like mail but also trains and others need to be state owned! 

  22. At this point some other country should colonise the UK. It can only get better.

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