$4.5 billion for Royal Mail
EP Group, which belongs to Krzetinski, obtained permission to purchase Royal Mail for $4.5 billion after the British government found that the Czech company met all requirements to protect the world’s oldest postal service, which is 508 years old. The government will still need to agree to key changes to Royal Mail, which is guaranteed by a gold share.
Details of the takeover of Royal Mail’s owner, International Distribution Services (IDS), by EP Group were agreed in May this year, but due to national security, the government had to give final consent to this transaction.
EP Group also reached an agreement with the British Post Office trade unions. Government representative Jonathan Reynolds assured that the new owner of Royal Mail would guarantee its financial stability and good future and would allow it to retain its jobs.
This is the first time in history that Royal Mail will pass into foreign hands
The transaction is expected to be finalized in the first quarter of 2025. When this happens, it will be the first time Royal Mail has passed into foreign hands. The history of the British post office dates back to the early 16th century and the reign of King Henry VIII.
As part of the contract, the company EP Group has undertaken, among other things, to guarantee a fixed-price postal service that will be available six days a week. Royal Mail will not be able to transfer dividends or similar payments to its new owner until it achieves financial goals and improves postal services. Royal Mail’s registered office and tax residence will have to remain in the British Isles, and employee payments and allowances will remain at current levels for at least the next two years. (PAP)
