The Czech billionaire aiming to buy Royal Mail has confirmed he is considering offering employees a stake in the business.
Daniel Kretinsky’s EP Group has asked shareholders to support its £3.6 billion takeover bid. In a letter to shareholders, EP Group outlined its plans for the future of Royal Mail’s owner, International Distribution Services (IDS). Last month, IDS agreed to the offer, which would take the company off the public markets and into the hands of Kretinsky’s firm, which already holds a 27% share.
The offer letter mentioned that EP Group is "exploring, following completion of the acquisition, potentially offering a form of employee participation model in the business," which could include "profit-sharing" for all staff members.
Unions representing postal workers have previously called for a restructuring to give staff a stake in the company. EP Group is asking shareholders, including current and former staff, to sell their shares for 370p each. Approval from shareholders holding at least 75% of IDS shares is needed.
Royal Mail staff currently own about 5.5% of the business through a share scheme established when the company was privatised in 2013. The remaining shares are owned by large institutional investors like UBS, Schroder, and BlackRock. Shareholders will vote on the deal at their next meeting on September 27.
Kretinsky, who has a net worth of £6 billion, also has investments in London football club West Ham United and supermarket giant Sainsbury’s. The potential sale of Royal Mail’s owner has drawn significant scrutiny, with senior politicians and unions expressing concerns about the future of the postal service.
