LONDON (AP) — The parent company of Britain's Royal Mail said Wednesday it has accepted a 3.6 billion pound ($4.6 billion) takeover offer from Czech investor Daniel Kretinsky.
The deal will see Kretinsky's EP Group buy Royal Mail owner International Distribution Services for 370 pence ($4.72) a share.
Including debt, the deal values IDS at 5.2 billion pounds ($6.6 billion).
The company said EP Group would put forward a series of “contractual commitments and intentions” to protect the public service aspects of the 500-year-old postal service.
Royal Mail, which was long state-owned, was privatised by the UK's Conservative government in 2013 and has been in financial difficulty ever since.
IDS said the proposed acquisition, which still requires shareholder approval, would see Royal Mail retain its name, brand, UK headquarters and six-day-a-week mail delivery obligations.
Kretinsky, who already owns a 27% stake in Royal Mail's parent company, has a wide portfolio of businesses across Europe: he owns a book publisher, a sports daily and magazines in the Czech Republic and is part-owner of the French newspaper Le Monde. He also has stakes in companies such as Macy's, Foot Locker and British supermarket chain Sainsbury's.
He also owns shares in Premier League football team West Ham.
Mr Kretinsky said his company had “the utmost respect for Royal Mail's history and tradition and knows owning this business comes with great responsibility, not only to its employees but also to the public who rely on its services every day”.
Dave Ward, general secretary of the Communication Workers Union, welcomed some of the promises but added: “The reality is that postal workers across the UK have completely lost trust in senior management at Royal Mail and services are being deliberately undermined.”
“We will be meeting with EP Group next week to demand a complete restructuring of employee and industrial relations, the restoration of postal services and further commitments regarding the future of the company,” he said.
