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Keith Williams, chairman of IDS, said: “The board is minded to recommend this offer price, which it considers to be fair and reflects the value of GLS’ current growth plans and the progress being made on change at Royal Mail to adapt the business to a significant fall in the demand for letters and growth in parcels.
“It is however regrettable that despite four years of asking, the Government has not seen fit to engage in reform of the universal service and thus improve our financial position and ensure that Royal Mail could provide an economically sustainable service to the British public.
“The board believes that the proposed contractual undertakings to be offered by EP Group should ensure that IDS continues to deliver the key elements of the universal service in the UK and protect the interests of the workforce at both Royal Mail and GLS.”
EP Group’s revised offer consists of a 360p per share in cash, plus a final dividend of 2p which is expected to be paid in September and a special dividend of 8p which would be paid on completion of the deal.
Mr Kretinsky, who is also an investor in West Ham Football Club and Sainsbury’s, is already the largest shareholder in IDS with a stake of more than 27pc.
His swoop is likely to prove controversial given the sensitive nature of the postal service.
Sir Vince Cable, who oversaw the privatisation of Royal Mail in 2013, has called on ministers to carry out a fit and proper person test on the Czech sphinx.
Mr Kretinsky was previously subject to a national security investigation when he increased his stake in the company above 25pc in 2022, though this was ultimately approved.
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