Government review launched into Czech billionaire’s Royal Mail stake

theguardian.com:

Ministers are to conduct a national security review into the ownership of Royal Mail, after it emerged the Czech billionaire who is the 500-year-old postal firm’s largest shareholder has increased his stake.

The intervention came as Royal Mail executives braced for the first of four days of national strike action over pay and conditions, with members of the Communication Workers Union set to walk out on Friday.

The company said it has received a notification from the government that its top shareholder, Vesa Equity Investment, could increase its stake to more than 25%. Vesa is controlled by Daniel Křetínský, whose financial holdings also include Sainsbury’s and West Ham United.

In a statement to the stock exchange, Royal Mail added: “The secretary of state has notified Royal Mail that such a step would constitute a trigger event under the NSI Act [National Security and Investment Act] and that he is exercising his call-in power under section 1 of the NSI Act.

“Royal Mail will fully cooperate with this review and a further announcement will be made as and when appropriate.”

Vesa, which is the company’s largest shareholder, has confirmed it had set out its intention to take its stake above 25% on 13 July. Vesa held 22% of the company in its most recent disclosure in July.

Křetínský, known as the “Czech sphinx” for his low public profile, has not commented in detail on his intentions for Royal Mail since he became its largest shareholder in 2020. The businessman, whose interests have spanned coal, gas and media, saw the value of the holding soar during the pandemic as Royal Mail benefited from the boom in online shopping and the delivery of testing kits.

In November, Royal Mail paid out a £400m dividend to investors including