Vesa Equity Investment, Royal Mail PLC (LSE:RMG)'s largest shareholder, is said to be looking to increase its stake in the postal service company, prompting a government investigation into the matter as Royal Mail's employees are set for the first day of strikes.
Royal Mail said in a statement yesterday it had received notification from the government that it “reasonably suspects” Vesa is looking to increase its holding from the current 22% to roughly 25%.
The Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng, told Royal Mail this would constitute a trigger under the National Security and Investment (NSI) Act, prompting an investigation on the grounds of the potential risk to national security.
The NSI Act allows the government to block an increase in shareholding or force divestment of a stake but also gives it the option to allow the deal to go through.
According to the Financial Times, Vesa, the holding company of Daniel Křetínský, announced its intention to the government in a voluntary notification.
Křetínský recently made headlines in the UK after becoming a major shareholder and director at West Ham Football Club.
The Czech billionaire is also chief executive in Energetikcy, the largest energy group in Central Europe, in which he has a 94% stake.