ROYAL Mail parent company International Distribution Services (IDS) said its board has approved a £3.57 billion takeover bid from Czech billionaire shareholder Daniel Kretinsky.
Kretinsky's EP Group vehicle, which already owns 27.6% of the company, made a formal offer for the company earlier this month after initial proposals.
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The deal will see EP pay 370p per share to investors in IDS.
Shareholders will vote on the deal at IDS's next annual general meeting in September.
Keith Williams, Chairman of IDS, said: “IDS has the potential to become a leading international logistics player.
“Both the IDS Board and the EP are acutely aware of their responsibilities to IDS and in particular to Royal Mail's unique heritage and its obligations as a designated Universal Service Provider of postal services in the United Kingdom.
“The IDS Board has negotiated a far-reaching package of legally binding commitments and commitments that provide important safeguards for our customers, employees and wider stakeholders.
“These relate to the provision of the universal service obligation at one price (including First Class letters which continue to be delivered six days a week), the financial stability and sustenance of the IDS Group, including Royal Mail, the retention of employee benefits and pensions and to ensure that Royal Mail continues to have its head office and tax residence in Great Britain.”
More to follow.