Kretinsky making a bid ?

[POSTMAN]

RM Communications

Response to possible offer announcement

Please see below a statement we have just issued to the market following an announcement on a possible offer by EP Corporate Group, which is an affiliate of VESA Equity.

We cannot say anything further at this time but a further announcement will be made when appropriate.

Response to possible offer announcement by EP Corporate Group a.s.
The Board of International Distributions Services plc ("IDS" or the "Company") notes the recent announcement made by EP Corporate Group a.s, (“EP Group”) regarding a possible offer for the Company.

The Board of IDS (the “Board”) confirms that on 9 April 2024 it received a preliminary and conditional non-binding proposal from EP Group regarding a possible cash offer for the entire issued and to be issued share capital of IDS not already owned by EP Group and its affiliates, namely VESA Equity Investment S.à r.l (“VESA Equity”) at 320 pence per share (the “Possible Offer”). VESA Equity is an approximately 27.5% shareholder in IDS.

The Board, together with its advisers, carefully considered the Possible Offer and concluded it significantly undervalues IDS and its future prospects. Accordingly, the Board unanimously rejected the proposal on 11 April 2024.

The Board believes the timing of the proposal is opportunistic. It does not reflect the growth potential and prospects of the Company under a new management team, a significant modernisation programme underway at Royal Mail, and the ongoing review by Ofcom in relation to the Future of the Universal Service Obligation.

There can be no certainty that any firm offer for IDS will be made, nor as to the terms on which any firm offer might be made. IDS shareholders are advised to take no action in relation to the Possible Offer. A further announcement will be made when appropriate.

In accordance with Rule 2.6(a) of the Code, EP Group is required, by not later than 5.00 p.m. (London time) on 15 May 2024 (being 28 days after today’s date), to either announce a firm intention to make an offer for IDS in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel on Takeovers and Mergers (the “Panel”) in accordance with Rule 2.6(c) of the Code.

This announcement is not being made with the consent of EP Group or VESA Equity.

[LouBarlow]

Royal Mail's overall profits are down because they have spent billions over the last few years in parcel automation and super-hubs but are still forced to deliver the USO. GLS is currently more profitable even though it is a relatively small company with over 20,000 employees delivering parcels. Just imagine how profitable RM could be if it had the same business model as GLS? This must be what Kretinsky is thinking and why he's prepared to spend half of his own fortune in a takeover bid. He is obviously smelling blood in the water of the fact that our shares were nearly at 52 week lows which could see shares doubling in value - just like they did during the pandemic when we delivered more parcels and letters every other day. Whatever the reasons its certainly a very cheeky opportunistic bid of buying the company when its of very low value knowing that record profits could just be around the corner in a few years time.

You have to wonder how much of this has been surreptitiously prepared for because there is no longer intratrading between RM and GLS, so that makes it easier for some random billionaire with loads of shares to see how separate entities might look.

There's no real signs of record profits being around the corner, if OFCOM don't agree to the changes to the USO anytime soon we could be looking at record losses (assuming the figures produced are genuine). RM could only become really profitable if it can somehow offload the letters & small packets I'm not sure the Government would allow that although, Labour have apparently already said they are open to the takeover.

Having the government control the distribution of letters is a massive vote winner. Even if it equates to a financial loss part renationalising Royal Mail would be popular.

Not sure Labour need any vote winners they have to then finance if they win the next election, given they look likely to win it anyway.

Absolutely, but the timing of this would be helpful to the tories. They have their typical voters defecting to Labour. You know the type. To them, RM is a ‘national institution’. If the tories commit to controlling letter deliveries, whether it be financially beneficial or not, it could win them some votes.

[Wullie10]

Having the government control the distribution of letters is a massive vote winner. Even if it equates to a financial loss part renationalising Royal Mail would be popular.

Why, who cares about letters anymore? Equally why would any govt renationalise a dying industry?

Exactly. The country is bankrupt and can't defend it self . Its borrowing billions so millions of people can stay unemployed and play xbox all day. We are paying people not to work. I can see them wanting to spend more billions sending postmen out to deliver 5 or 6 letters a street everyday. May as well reopen the coal mines and dig up coal that will never be used. Even a Labour government can only take economic illiteracy so far.

[Rommagic]

He worth around £5billion. No way he will spend £4billion too buy the 72.5 shares maybe close too 1 billion then he would want more back through the pension etc.

[kazardaimenu]

He knows delivery 2.0 and the Evie delivery system will make the company billions.

[A2B]

I'm hear that the current owners of Evri are looking to sell, they have bled the stone dry

[norris9]

can Kretinsky give me a nice redundancy payout so I leave....

[scotchy1962]

Feck! This didn't take long to turn into a conspiracy laden discussion on politics and big business, way over our pay grade and leads to all sorts of theories.
So for my tuppence worth, Kretinsky buys us up, miraculously he sides with the union, we go down to 4 day weeks, earlier starts are reinstated and i personally get retired on a massive pension for seeing all this happening.

[Dorset Plodder]

I agree with you scotchy ... It's above my paygrade .... I'm not going to lose any sleep worrying about it.

I love the way some people on here stress about EVERYTHING connected to Royal Mail.

It is great that they have such insights into how everthing's going to work out in every eventuality though. It's not a particularly good job anymore I'm sure most of us could find something equal, if not better, if we had to (as job losses seem to concern some).

I'd be much more worried if I was a Lazy Bastard COM whose been making £50K a year for polishing a chair with his ass!

[scotchy1962]

I agree with you scotchy ... It's above my paygrade .... I'm not going to lose any sleep worrying about it.

I love the way some people on here stress about EVERYTHING connected to Royal Mail.

It is great that they have such insights into how everthing's going to work out in every eventuality though. It's not a particularly good job anymore I'm sure most of us could find something equal, if not better, if we had to (as job losses seem to concern some).

I'd be much more worried if I was a Lazy Bastard COM whose been making £50K a year for polishing a chair with his ass!

Very good Dorset, especially the last quote.

[Mr Rush]

Labour have apparently already said they are open to the takeover.

Very much a message not directed at the voting public. Starmer doesn't want the Liz Truss experience.

[POSTMAN]

https://www.cwu.org/ltb/ltb-136-24-upda ... eover-bid/

LTB 136/24 – UPDATE ON IDS TAKEOVER BID
No. 136/24

18th April 2024



Dear Branches,

UPDATE ON IDS TAKEOVER BID

The news of a takeover bid for Royal Mail Group (IDS) by Daniel Kretinsky is another very significant moment.

It is now clear the bid, made by Kretinsky-owned EP Group, was put to the Royal Mail Board on 9th April and subsequently rejected on 11th April.

The Royal Mail Board have labelled the offer as ‘opportunistic’, while the bidders point to the lack of progress in several areas in the company and a willingness to engage with all stakeholders, including the CWU.

The truth is handing over the ownership of one of the UK’s most important institutions to a foreign equity investor cannot be right. The vulnerability of Royal Mail Group to this type of bid is a clear demonstration of how privatisation has failed. However, we must be equally clear that the direction of the current Royal Mail board remains unacceptable.

Royal Mail needs a new ownership and governance model that builds a postal service for the workers and customers- not one solely focused on shareholder payouts, driving down the service and the terms and conditions of postal workers.

The CWU will be campaigning publicly and politically to deliver this change of direction for Royal Mail. The Labour Party has already committed to a comprehensive regulatory review of the sector and to exploring new models of corporate governance for Royal Mail. We have subsequently engaged the Labour Party and will meet formally with them in the coming weeks to develop their position and seriously explore the alternatives to the current model. We will also remind Labour of their official Conference policy to renationalise Royal Mail.

In addition, we will be writing to the Government to express our concerns and seek assurances regarding any interventions they may make, given that scrutiny is clearly required for a takeover bid of this nature.

We have also made contact with Royal Mail at the most senior level.

We are seeking assurances from all concerned stakeholders in this process, regardless of the ownership of the company. Aside from the obvious assurance of the security of postal workers’ jobs, another reassurance we are seeking is that the pension surplus, related to the new pension system being introduced in June, will not be taken by the company or any stakeholder and instead, will be used to invest in the service and workforce. We will continue to meet with the company and relevant stakeholders to ensure any outcome provides the best possible future for postal workers.

By law, EP Group now has until the 15th of May to launch a formal offer or withdraw from the process. We will keep members updated with any developments related to this matter.

We recognise this is another challenging moment and one that follows on from a huge dispute with the employer and a continually difficult workplace environment. That being said, this must also be seen as an opportunity for the voice of postal workers to be heard. We now have the Ofcom report on the future of the Universal Service Obligation (USO) and the takeover bid raising awareness of the challenges facing the UK’s postal service and the workforce.

We can assure members that in an election year, we will maximise every opportunity possible to apply pressure to all political parties and the employer on the future of Royal Mail.

Finally, we will be holding a live session with CWU members on this matter in the next couple of weeks. We will confirm the date and time shortly.

If you have any further queries, please contact the General Secretary’s Office at jdunn@cwu.org

Dave Ward
General Secretary

Martin Walsh
Deputy General Secretary (Postal)

[Ciderboy1957]

CWU can resist all they want won't make a bit of difference, union is finished on the floor, sold down the river , staff have no faith in you

[rogersh]

...."another reassurance we are seeking is that the pension surplus, related to the new pension system being introduced in June, will not be taken by the company or any stakeholder and instead, will be used to invest in the service and workforce."...

The first I've heard mention of a specific date for the new pension.

[rubberbond]

Pension asserts worth £8billion?.

I thought the liabilities were held by the taxpayer ,because it wouldn’t have been viable to privatise it. So the taxpayers have all the liabilities and the shareholders get all the dividends, is it me or does that seem quite right somehow.