International Distributions Services PLC buyer Daniel Kretinsky held private talks with new UK Business Secretary Jonathan Reynolds last week to reassure him on plans for postal service Royal Mail, Sky News reported on Monday.
Labour’s Reynolds commented that it was ‘reasonable’ to expect the £3.57 billion takeover of the FTSE 250-listed owner of letter and package carrier Royal Mail to be called in for government scrutiny.
One source briefed on the meeting described it as ‘cordial and constructive’, Sky News reported.
Sky News said that Kretinsky has also reassured Royal Mail staff of his intentions, and said that he would fulfil the universal service obligation ‘forever’.
IDS has been lobbying to remove the six-days-a-week delivery obligation imposed by the USO, on account of it being ‘financially onerous’.
Last week, Kretinsky met with trade union bosses to discuss his bid for IDS.
https://news.sky.com/story/royal-mail-bidder-kretinsky-holds-talks-with-reynolds-over-3-6bn-deal-13186660
IDS agreed to the takeover in May. The offer was made through a special purpose acquisition vehicle owned by J&T Capital Partners as and EP Corporate Group as, a subsidiary of EP Investments Sarl.
It recently provided a trading update for the three months that ended June 30.
IDS reported an 8.2% increase in quarterly revenue to £3.26 billion from £3.01 billion a year before.
Royal Mail revenue rose 11% to £2.00 billion from £1.81 billion. This was attributed to an 11% growth in letter revenue, due to postal votes and candidate mail ahead of the UK general election.
IDS shares were down 0.2% to 345.00 pence each in London on Monday afternoon.
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