Business

Royal Mail takeover to land advisers £130m fee bonanza

Advisers working on the controversial takeover of Royal Mail’s parent company are in line for a fee bonanza worth more than £130m.

Sky News has learnt that International Distribution Services (IDS) and its would-be owner, a vehicle owned by Czech billionaire Daniel Kretinsky, will fork out the lavish sum to bankers and other professional services firms.

City sources close to the deal said the fee pool would be formally disclosed in an offer document to be published on Wednesday.

Among the banks which will share in the pot are Goldman Sachs, JP Morgan and BNP Paribas.

The majority of the fees will be paid by Mr Kretinsky’s EP UK Bidco, with tens of millions of pounds owed to banks for helping to finance the deal, according to insiders.

The takeover of IDS, which remains subject to a national security review, has thrust the future of Britain’s universal postal service back into the public spotlight.

Mr Kretinsky has offered a series of commitments about maintaining the service levels proposed by IDS as part of an ongoing consultation led by Ofcom, the industry regulator.

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These also include maintaining the company’s UK tax residency, headquarters, branding and existing employment rights.

Those commitments do not go far enough, according to the union leader representing Royal Mail’s 112,000 UK frontline workers.

The £3.6bn offer for IDS, which includes the international parcels arm GLS, is expected to be voted on by shareholders later this year.

None of those contacted by Sky News would comment on Tuesday night.

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