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BNP Paribas Joins Czech Billionaire in Royal Mail Takeover

2024-07-26 08:07:35.370000

Czech billionaire Daniel Kretinsky's EP Group is considering options and wants to engage constructively with Royal Mail owner International Distributions Services (IDS) after its initial takeover approach was rebuffed. EP Group highlighted the weak financial performance and poor service delivery of Royal Mail, which has struggled to adapt to changing trends in the delivery sector. IDS shares surged as much as 26% following the news. Kretinsky, known for his acquisitions across Europe, has a 27.5% stake in IDS and also holds stakes in J Sainsbury, West Ham United, Casino Guichard Perrachon, Elle magazine, Le Monde newspaper, and TF1 TV network. Royal Mail, previously owned by the UK government, was privatized in 2013 and the government sold its remaining stake in 2015. The loss-making company has faced labor disputes and has pushed for relaxed rules on letter deliveries. Analysts suggest Kretinsky may look to break up IDS, which includes the more profitable GLS logistics business based in Amsterdam.

Fund manager Redwheel supports Royal-Mail owner IDS' board decision to reject a non-binding share bid from EP Group. Redwheel, the third-largest shareholder in IDS, agrees that EP Group's offer of 320 pence per share undervalues IDS and its future prospects. EP Group, owned by Czech billionaire Daniel Kretinsky, made the cash offer on April 9 for Royal Mail. [6ba0b2bf]

BNP Paribas, along with Czech billionaire Daniel Kretinsky and two Wall Street firms, will advise on a $4.63 billion takeover of Royal Mail's owner. BNP Paribas aims to be a major player in London's investment banking scene. The bank's UK Country Head aims to help local businesses access international finance. BNP Paribas ranked 15th in the UK investment banking sector in 2023 with a 2.2% market share. Recent high-profile hires aim to strengthen its private equity and UK M&A teams. BNP Paribas is focusing on organic growth and has seen a rise in revenue rankings. The bank is becoming a more favored corporate and investment bank in Europe.

The Israel Postal Company has been bought by the municipal service provider Milgam for 461 million shekels (125 million US dollars) after winning the tender. This marks the first time in Israel's history that a private company will manage the postal service. The purchase was approved by Israel's Government Companies Authority to sell state shares. In the bidding process, 15 companies showed interest, with Rami Levi company offering 380 million shekels and coming in second. The Israel Postal Company has been operating under a license supervised by the Communications Ministry and following the postal law's rules. It has undergone an austerity and recovery plan, including reducing payroll expenses, moving to digital services, closing branches, and transferring assets to the state. The privatization is expected to result in a more efficient, faster, and higher quality service for the general public.

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