Czech billionaire and co-owner of West Ham United Daniel Křetínský, aka the ‘Czech Sphinx’, has made a cash offer for Royal Mail owner International Distribution Services through his sprawling EP Group conglomerate.
Křetínský, who already owns a 27% stake in the company, had his bid rejected but is working on a plan to improve the offer.
EP Group said it “looks forward to continuing to engage constructively with the board as EP Group considers all its options”.
"Weak financial performance, poor service delivery and a slow transformation, in the face of a market going through structural change, have put the business under unsustainable pressure,” said EP Group in a statement.
"With the increasing competition from multinational companies in the UK postal market, private investment in Royal Mail becomes crucial."
Royal Mail would benefit "from being able to take a longer-term view" and EP Group said it is prepared to support the British institution through a transformation process.
The potential takeover of Royal Mail by a foreign investor was criticised by The Communication Workers Union (CWU), which wrote on Twitter/X: “The truth is handing over the ownership of one of the UK’s most prestigious institutions to a foreign equity investor cannot be right. But neither is the current model or direction of the company.”
Who is this so-called Czech Sphinx?
Lawyer and businessman Daniel Křetínský is often referred to as the ‘Czech Sphinx’ due to his enigmatic public persona and his strategic, albeit low-profile approach to business and public communications.
He is known for his extensive investments across various sectors, including energy, media, retail and sports.
Křetínský commands influence over the central European energy sector as chairman and chief executive of Energetický a průmyslový holding (EPH), one of the largest energy companies in the region.
The tycoon’s UK energy assets include the Langage and South Humber Bank gas plants and the Lynemouth biomass plant in Northumberland.
Alongside Royal Mail, Křetínský’s Vesa Equity Investment also owns a 10% stake in British supermarket chain J Sainsbury PLC (LSE:SBRY), a 29.9% stake in Dutch postal service PostNL and stakes in Footlocker and French free-to-air TV network TF1 Group.
A 2020 book published by journalist Jérôme Lefilliâtre titled ‘Mister K’ portrayed him as, quoting French paper Le Monde (which he also partially owns), “an intelligent, ambitious and determined businessman, but also greedy, opportunistic and intractable”.
He is a director and major shareholder of the English football club West Ham United.
According to Forbes, Křetínský is the second-wealthiest Czech billionaire and 208th richest person in the world with a $9.2 billion fortune.
The Czech Sphinx is one-half of the central European country’s most powerful power couple; his 27-year-old girlfriend is Olympic showjumper Anna Kellnerova, daughter of Peter Kellner, the richest man in the Czech Republic upon his death in 2021.
IDS shares popped 19% on the news of EP Group’s bid.