Billionaire owner Kretinsky named chair of Royal Mail

(Sharecast News) - Czech billionaire Daniel Kretinsky is to become chairman of the Royal Mail, it was confirmed on Friday, a month after taking parent International Distribution Services private in a �3.6bn deal.

The tycoon is joining the IDS board as a non-executive, along with three other directors, becoming chair of both. He also becomes chair of both the IDS board and the board of directors of Royal Mail.

He replaces former chair Keith Williams, who left with his fellow directors when the business delisted from the London Stock Exchange in May.

In a brief statement, Kretinsky's investment company EP Group said its participation at board level "strengthens its role as a key stakeholder and strategic partner, reinforcing confidence in the company's governance and leadership.

"The appointments mark a new phase of collaboration aimed at unlocking long-term value for all shareholders and stakeholders."

Shareholders voted in favour of the buyout at the end of April, transferring the postal service into foreign ownership for the first time in its 500-year history.

Under the terms of the deal, EP had to maintain Royal Mail's Universal Service Obligation, however, and award the government a so-called golden share.

The share, which is worth �1 and was issued on Friday, has no voting or economic rights. But it means the Royal Mail's headquarters and tax residency must be kept in the UK.

Under the USO, Royal Mail is bound to deliver letters six days a week to any address in the UK, and parcels Monday to Friday.