Royal Mail’s owner said it had accepted a cash offer from the Czech billionaire Daniel Křetínský for the struggling postal service, writes Chris Tindall.
The West Ham director made a formal submission of £3.57bn to International Distribution Services (IDS), which implies an enterprise value of around £5.3bn.
This is an improvement on an earlier £3.1bn offer that IDS said significantly undervalued Royal Mail.
If the deal is approved, it means Křetínský’s EP Group would pay 370p per share to IDS shareholders.
The publicly owned Royal Mail was privatised in 2013 when 60% of its shares were floated on the London Stock Exchange, generating £1.98bn.
Two sales of the remaining government-owned shares were made available in June 2015 and again in October 2015, generating a further £1.34bn.
