Possible offer response

Please see below a statement we have just issued to the market following an announcement on a possible offer by EP Corporate Group, which is an affiliate of VESA Equity.

We cannot say anything further at this time but a further announcement will be made when appropriate. 

Response to possible offer announcement by EP Corporate Group a.s.

The Board of International Distributions Services plc ("IDS" or the "Company") notes the recent announcement made by EP Corporate Group a.s, (“EP Group”) regarding a possible offer for the Company.

The Board of IDS (the “Board”) confirms that on 9 April 2024 it received a preliminary and conditional non-binding proposal from EP Group regarding a possible cash offer for the entire issued and to be issued share capital of IDS not already owned by EP Group and its affiliates, namely VESA Equity Investment S.à r.l (“VESA Equity”) at 320 pence per share (the “Possible Offer”). VESA Equity is an approximately 27.5% shareholder in IDS.

The Board, together with its advisers, carefully considered the Possible Offer and concluded it significantly undervalues IDS and its future prospects. Accordingly, the Board unanimously rejected the proposal on 11 April 2024. 

The Board believes the timing of the proposal is opportunistic. It does not reflect the growth potential and prospects of the Company under a new management team, a significant modernisation programme underway at Royal Mail, and the ongoing review by Ofcom in relation to the Future of the Universal Service Obligation. 

There can be no certainty that any firm offer for IDS will be made, nor as to the terms on which any firm offer might be made. IDS shareholders are advised to take no action in relation to the Possible Offer. A further announcement will be made when appropriate. 

In accordance with Rule 2.6(a) of the Code, EP Group is required, by not later than 5.00 p.m. (London time) on 15 May 2024 (being 28 days after today’s date), to either announce a firm intention to make an offer for IDS in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel on Takeovers and Mergers (the “Panel”) in accordance with Rule 2.6(c) of the Code.  

This announcement is not being made with the consent of EP Group or VESA Equity.