The owner of Britain’s Royal Mail said on Wednesday it had accepted a 3.6 billion pound ($4.6 billion) takeover offer from Czech investor Daniel Krzetinsky.
Under the terms of the deal, Krzetinski’s EP Group will buy International Distribution Services, which owns Royal Mail, for 370 pence ($4.72) per share.
Including debt, the IDS deal is worth 5.2 billion pounds ($6.6 billion).
It said EP Group would propose a series of “contractual commitments and commitments” to protect the public service aspects of the 500-year-old postal service.
Long publicly owned, Royal Mail was privatized by Britain’s Conservative government in 2013 and has struggled financially.
“Royal Mail is as British as it gets,” Jonathan Reynolds, the shadow minister for business and trade and a member of parliament, wrote in a May 15 post. letter to the EP Group. “Labour will take the necessary steps to defend its unquestioned identity and place in public life.”
IDS said there were no major job cuts planned as part of the deal, which is subject to shareholder approval. Under the plan, Royal Mail will retain its name, branding, UK headquarters and six-day-a-week mail delivery commitment.
Krzetinski, who already owns a 27% stake in parent company Royal Mail, has an extensive portfolio of business interests across Europe. In the Czech Republic he owns book publishers, a sports daily and magazines, and is also a co-owner of the French newspaper Le Monde. He has stakes in companies such as Macy’s, Foot Locker and British supermarket chain Sainsbury’s.
He also owns a stake in Premier League football team West Ham.
Krzetinski said his company has “the utmost respect for the history and traditions of Royal Mail, and I know that owning this business comes with a huge responsibility – not just to its employees, but to the citizens who rely on its services every day.”
Dave Ward, general secretary of the Communications Workers’ Union, said he welcomed some of the commitments but added that “the reality is that postal workers across the UK have lost all faith in Royal Mail’s senior management and the service has been deliberately shut down.” “
“We will meet with EP Group next week and call for a complete reset of labor and industrial relations, restoration of postal services and further commitment to the future of the company,” he said.