Daniel Kretinsky

William Malcolm

Vesa Becomes Largest Shareholder In Royal Mail

Daniel Křetínský has become the largest shareholder in the British Post Royal Mail through Vesa Equity Investment, with a 13 percent stake in the company.

Vesa, controlled by Křetínský and Slovak financier Patrik Tkáč, became the largest shareholder in the company after Schroder Investment Management Fund, trimmed its 15% stake last week.

Royal Mail faces pressure when the company is not in a good position. Since its privatization in 2013 and its subsequent listing on the stock exchange, it has not been able to adapt to modern trends. In recent weeks, it has already stated that it is losing a million pounds a day and has canceled the payment of dividends for this year and next. “Royal Mail operates in a good industry but is poorly managed. Low profitability has pushed stock prices significantly down in recent years, and Křetínský is one of the activist shareholders – he wants to push management to streamline operations,” said Finlord analyst Boris Tomčiak.

Křetínský will aim to reduce costs and get rid of some activities. And as the volume of parcel shipments in Europe increase due to the rise in online sales, there is speculation about Křetínský’s interest in the spin-off of GLS, a logistics and profitable subsidiary of Royal Mail, as opposed to letter delivery, which is virtually a loss-making activity worldwide. Křetínský can also get rid of a part of real estate, the valuation of which in assets is at the level of three billion pounds, Tomčiak told Forbes.