The 370p per share takeover offer from Czech billionaire Daniel Křetínský’s EP UK Bidco had expected to be declared unconditional during Q1.
However, today (5 March) Royal Mail parent group International Distribution Services (IDS) announced that the Romanian Foreign Direct Investment (FDI) clearance remained outstanding.
This means that the timetable has been pushed back to Q2.
There is political upheaval and ongoing protests in Romania. First round elections held at the end of last year were won by far-right candidate Calin Georgescu, but the result was then annulled due to allegations of Russian interference.
In a stock market update, IDS said: “Discussions between EP and Bidco and the relevant authorities have been progressing well. Whilst the decision in respect of the Romanian FDI condition rests with the relevant authorities in Romania, such authorities have neither indicated, nor is EP or Bidco aware of, any substantive issues relating to the satisfaction of the Romanian FDI condition.
“EP and Bidco's expectations are that the Romanian FDI Condition will be satisfied so as to facilitate the Offer becoming or being declared Unconditional in the second quarter of 2025.”
The UK government cleared the purchase in December, but will retain a so-called ‘golden share’, which means any changes to Royal Mail’s future ownership, tax residency or headquarters will need government approval.
Class action update
Separately, the class action launched by Bulk Mail Claim last year against IDS and Royal Mail has been given the green light to go to trial.
The action gained the required approval from the Competition Appeal Tribunal earlier this week.
The overall claim was originally put at £878m, but this figure has now risen to £1.2bn based on Bulk Mail Claim’s assessment of the estimated losses to date.
The claim has been brought on behalf of an estimated 290,000 bulk mail customers including businesses and charities, and seeks to achieve compensation for overcharging.
Andrew Wanambwa, partner at law firm Lewis Silkin representing Bulk Mail Claim, said gaining approval to proceed to trial meant “we are one step closer to securing compensation for those affected”.
A Royal Mail spokesperson said: “Royal Mail believes Bulk Mail Claim Limited’s claim is without merit and we will defend it robustly.”
