Foreign investors greenlight Czech Sphinx's £3.6bn takeover of Royal Mail: National postal service transitions to foreign ownership for the first time
Rewritten Article:
The historic takeover of Royal Mail, the 509-year-old British postal service, by Danish billionaire Daniel Kretinsky has been made official following the approval of shareholders for his bid. This marks the first time that the post carrier will be under foreign ownership since its establishment by Henry VIII in 1516[1].
Known as the "Czech Sphinx" due to his secretive approach, Kretinsky, an energy tycoon, approached Royal Mail with a £3.6 billion bid last year, sparking outrage from politicians and businesses[1].
IDS, Royal Mail's parent company, announced yesterday that over 80% of its shareholders backed the takeover by Kretinsky's firm EP Group, surpassing the required 75% threshold[1].
In a statement, Kretinsky expressed his gratitude for the support, stating that Royal Mail, under new ownership, will continue to enhance service quality, innovate for customers, and grow the business[1].
As Kretinsky amassed a near-28% stake in IDS, his bid for the postal service was initiated[1]. In the process, the acquisition will be partially funded by loans totaling approximately £6 billion, with £3 billion in new borrowing on top of IDS’s existing £2 billion debt[1].
Kretinsky agreed to several conditions to secure ministerial approval for the acquisition, including retaining the Universal Service Obligation (USO) and allowing the Government to maintain a 'golden share' in the business[1]. This allows ministers to approve any changes to the company's ownership, tax residency, or headquarters locations.
The USO ensures the continuation of first-class mail delivery to any destination in the UK six days a week[1]. However, the regulations governing the service by watchdog Ofcom are under review, with a proposed change to second-class deliveries being limited to every other working day[1].
Dave Ward, general secretary of the Communication Workers Union, representing over 100,000 Royal Mail postal workers, warned that they will challenge EP Group if they fail to fulfill their obligations to employees and customers[1].
Aside from his interests in energy plants and the postal service, Kretinsky is also invested in Sainsbury's and West Ham United football club[1]. His company, EPH, has garnered attention for its strategic focus on expanding logistics and infrastructure assets[2].
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- Daniel Kretinsky, the prominent Czech investor known as the "Czech Sphinx," recently extended his investment portfolio to include Royal Mail, following the approval of his £3.6 billion takeover bid.
- Kretinsky's company, EP Group, secured 80% shareholder approval for the historic takeover, making Royal Mail, a 509-year-old British postal service, the first under foreign ownership since its inception in 1516.
- In the process of the takeover, Kretinsky agreed to several conditions, including maintaining the Universal Service Obligation (USO) and allowing the government to retain a 'golden share' in the business.
- Aside from his interests in energy plants and the postal service, Kretinsky is also invested in Sainsbury's, West Ham United football club, and is strategically expanding his logistics and infrastructure assets.
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