International Distribution Services (IDS) has announced it is likely to recommend a new offer price from Czech billionaire Daniel Kretinsky’s EP Corporate Group to purchase Royal Mail.
The new offer of 370p per share – for a total value of £3.5bn (US$4.4bn) – follows a previous bid of 320p per share that was rejected in April 2024 for ‘significantly’ undervaluing IDS.
Commenting on the new bid, Keith Williams, chairman of IDS, said, “The board is minded to recommend this offer price, which it considers to be fair and reflects the value of GLS’s 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.
“It is, however, regrettable that despite four years of asking, the government has not seen fit to engage in reform of the Universal Service and thus improve our financial position and ensure that Royal Mail could provide an economically sustainable service to the British public.
“The board believes that the proposed contractual undertakings to be offered by EP Group should ensure that IDS continues to deliver the key elements of the Universal Service in the UK and protect the interests of the workforce at both Royal Mail and GLS.”
EP Corporate Group’s 100%-owned subsidiary VESA Equity Investment owns 27.6% of IDS, making it the company’s biggest shareholder. EP now has until May 29 to make a formal offer for the purchase of Royal Mail. According to IDS, there is no certainty that an offer will be made.