UK govt will probe Kretinsky plan to lift Royal Mail stake

The UK government reviewing whether a plan by Czech billionaire Daniel Kretinsky to lift his stake in Royal Mail beyond 25% would be in the national interest, the parcel and letter carrier said on Thursday.

Kretinsky’s Vesa Equity holds 22% of the company and is its biggest shareholder. Business Secretary Kwasi Kwarteng told Royal Mail he was exercising new powers to look into the matter under the National Security and Investment Act.

The law came into force this year to give the government greater say over deals where national interests might be involved.

Royal Mail and Vesa both said they would cooperate with the review. Kwarteng told the company he “reasonably suspects” Kretinsky might increase his holding from 22% to more than a quarter – the point at which a probe could be triggered under the legislation.

Kretinsky, dubbed the “Czech sphinx”, is a major investor in West Ham United football club and also holds stakes in French newspaper Le Monde, as well as retail giants Sainsbury’s and Macy’s. His Royal Mai stake is worth around £150m.

The government recently used the law to reviewed French tycoon Patrick Drahi’s stake-building in telecoms giant BT. It ultimately said he could keep his 18% shareholding.

Reporting by Frank Prenesti at Sharecast.com