Yahoo Finance Kretinsky mulls giving Royal Mail staff a stake as part of £3.6bn deal
The Czech billionaire that is looking to buy Royal Mail is weighing up giving staff a stake in the business if his offer is accepted, according to a letter his firm wrote to shareholders.
The letter from Daniel Kretinsky’s EP Group sent to 100,000 shareholders said the Czech firm would explore “potentially offering a form of employee participation model in the business” which could include “profit-sharing” among all staff.
EP Group wrote the letter asking shareholders of IDS, Royal Mail’s parent company, to sell their stake in the firm for 370p per share; a 77 per cent premium on the closing price before EP Group’s interest was made public.
It needs the approval of shareholders holding at least 75 per cent of IDS shares. Royal Mail staff own about 5.5 per cent of the business through a share scheme which was set up when the company was privatised in 2013.
Almost all of the remaining shares are held by institutional investors, including Blackrock and UBS.
IDS has accepted Kretinsky’s offer and EP Group is encouraging shareholders to accept it before August 25.
The concession is likely to assuage some of the jitters among politicians and unions about the Kretinsky’s offer, which is expected to come under heightened scrutiny given Royal Mail’s responsibility for a critical part of UK infrastructure and the bidder not being British.
Unions representing postal workers have previously called for staff to be given a stake in the company via a shake-up of its structure. The Communications and Workers Union did not immediately respond to a request for comment.
In its manifesto for next week’s general election, the Labour Party said it would “ensure that any proposed takeover is robustly scrutinised and that appropriate guarantees are forthcoming that protect the interests of the workforce, customers and the United Kingdom”.
It also pledged to “explore new business and governance models” for the postal service.
Meanwhile Kemi Badenoch – whose remit the bid fell under until the election was called – has already indicated the deal would be heavily scrutinised by those in government amid concerns foreign owners would leave the firm with fewer ties to the UK.
