The board of International Distribution Services (IDS) has recommended a takeover bid from its largest shareholder, Daniel Křetínský, who has offered 370p per share through his company EP Group. Shareholders will vote on the deal at IDS's next annual general meeting in September.

In addition to Royal Mail, IDS also owns GLS, a fast-growing shipping company based in the Netherlands. Křetínský is offering a total of GBP 3.57 billion, with about a third of the acquisition to be financed with equity, while the remaining amount will be covered by a loan from a consortium including BNP Paribas, Citibank, Société Générale and Unicredit. The acquisition comes at a politically sensitive time as the UK general election on 4 July approaches. The proposed takeover will be subject to a national security review, possibly by the new government.

Křetínský, whose investment company currently holds a 27.6% stake in the firm, has committed to a number of "contractual obligations" given Royal Mail's significant role in Britain's national infrastructure. These include commitments that Royal Mail will maintain its current six-day-a-week delivery of first class letters, respect the rights of employees and the integrity of the Royal Mail brand, and maintain its UK headquarters.

The company's performance has deteriorated in recent years, leading to large financial losses. Letter volumes have halved since 2011, while parcel delivery has become more popular and profitable. In 2013, Royal Mail was privatised in one of Britain's biggest state sell-offs in decades, with shares priced at 330p apiece at IPO.