Royal Mail group ‘minded’ to back £3.5m bid proposal from Czech billionaire

Royal Mail’s owner has said it would be “minded” to agree a takeover by shareholder Daniel Kretinsky after the Czech billionaire put forward a higher proposed bid worth around £3.5 billion.

International Distribution Services (IDS) said Mr Kretinsky’s EP Group had upped its proposal to 370p a share, from an initial 320p-a-share approach made on April 9, to buy the shares in IDS that it does not already own.

IDS said Mr Kretinsky, whose EP Group owns a 27.5% stake in the firm, had agreed to offer a set of “contractual undertakings” to protect key public interest factors recognising Royal Mail’s status as a major part of national infrastructure under the proposal.

This would include commitments to Royal Mail’s plans to keep six-day-a-week first class letter deliveries under the universal service, protect workers’ rights and keep the Royal Mail brand and UK headquarters.

IDS said it was minded to agree to a deal on the terms and price in the proposal, should a firm bid be made.

Mr Kretinsky now has until 5pm on May 29 to make a firm offer.