CWU: an impending takeover bid for Royal Mail Group is another significant moment
Royal Mail has rejected a takeover bid by Czech billionaire and part West Ham owner, Daniel Křetínský’s EP Group, describing it as “opportunistic” and not reflective of “the growth potential and prospects of the Company”.
The Board of IDS confirms that on 9 April 2024 it received a preliminary and conditional non-binding proposal from EP Group ( regarding a possible cash offer for the entire issued and to be issued share capital of IDS not already owned by EP Group and its affiliates, namely VESA Equity Investment S.à r.l at 320 pence per share. VESA Equity is an approximately 27.5% shareholder in IDS.
The Board believes the timing of the proposal is opportunistic. It does not reflect the growth potential and prospects of the Company under a new management team, a significant modernisation programme underway at Royal Mail, and the ongoing review by Ofcom in relation to the Future of the Universal Service Obligation.
The Board, together with its advisers, carefully considered the Possible Offer and concluded it significantly undervalues IDS and its future prospects. Accordingly, the Board unanimously rejected the proposal on 11 April 2024.
In accordance with Rule 2.6(a) of the Code, EP Group is required, by not later than 5.00 p.m. (London time) on 15 May 2024, to either announce a firm intention to make an offer for IDS in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel on Takeovers and Mergers in accordance with Rule 2.6(c) of the Code.
The Communication Workers Union responded to the news on social media site Facebook stating: “The breaking news of an impending takeover bid for Royal Mail Group (IDS) by Daniel Kretinsky is another significant moment. The truth is handing over the ownership of one of the UK’s most prestigious institutions to a foreign equity investor cannot be right. But neither is the current model or direction of the company.”
The truth is Royal Mail needs a new ownership and governance model that builds a postal service for the workers and customers and not one built solely focused on shareholder payouts and driving down the service and the terms and conditions of the workers. The CWU will be campaigning publicly and politically to deliver this change of direction.”
