- Czech oligarch to meet with business secretary
- Discussion scheduled regarding £3.7bn acquisition
- Acquisition of Royal Mail under scrutiny
Daniel Kretinsky, the Czech oligarch who has negotiated a £3.7bn acquisition of International Distribution Services, will engage in discussions with Kemi Badenoch, the business secretary.
The business secretary, Kemi Badenoch, is scheduled to meet with the Czech tycoon who is on the brink of becoming the first foreign proprietor of Royal Mail in its 500-year history next week.
Ms Badenoch will engage in discussions with Daniel Kretinsky following the completion of a £3.6bn agreement between the board of International Distribution Services (IDS) and his investment company, EP Group.
Insiders mentioned on Thursday that a meeting has been tentatively scheduled for the middle of next week.
The government has not expressed any fundamental objection to the acquisition, which will be reviewed under the National Security and Investment Act.
Investors are of the opinion that the offer is at substantial risk of failure, as shares in IDS are currently trading at a substantial discount to Mr Kretinsky’s 370p-per-share offer.
The Czech oligarch, who also owns a stake in West Ham United Football Club, has committed to several obligations related to the acquisition, such as refraining from dissolving IDS for a minimum of three years.
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He has also committed to pursuing the same universal service obligation (USO) reforms through discussions with Ofcom, the industry regulator, that Royal Mail has argued are necessary to ensure the viability of its six-day-a-week delivery model.
The coalition government privatized Royal Mail in 2013, and Vince Cable, the Liberal Democrat business secretary, was responsible for the company’s stock exchange flotation at the time.
The government is currently facing a delicate situation, as ministerial activities are subject to more stringent regulations during the election purdah period. Consequently, the proposal is timely.
EP Group and the Department for Business and Trade declined to provide any commentary.
