Royal Mail investors left baffled by takeover vote amid fears Czech Sphinx is buying on the cheap

Another storm of protest is brewing over the controversial takeover of Royal Mail by Czech billionaire Daniel Kretinsky.

The delivery firm’s owner, International Distribution Services (IDS), has been criticised for “deliberately” making it difficult for hundreds of thousands of private shareholders to have a say in the £3.6bn deal.

An offer document was sent to shareholders on June 26, but it was 140 pages long and it was unclear who would vote for or against the deal. Shareholder rights groups called the information “useless.”

A spokesman for the UK Shareholders’ Organisation said: “As an organisation we find the information provided by IDS to be so unhelpful that one wonders whether this is a deliberate ploy by IDS and Royal Mail.”

ShareSoc, which also represents private shareholders, added that it was “concerned that individual investors may have had difficulty knowing how to accept or oppose the offer.”

He highlighted the “lack of clear language” in the 140-page offer document, saying it was too “complex and legalistic.”

A ShareSoc spokesperson said: “We have been contacted by individual investors about this and we stand ready to assist our members in any way we can.”

An IDS spokesman said: “The acquisition of IDS, as a UK listed company, is subject to the strict requirements of the Takeover Code. The offer document has been prepared in accordance with the format prescribed by the (code).

‘We do not understand why the UK Shareholders’ Association and ShareSoc are consulting the materials, but we are communicating with them to understand any specific concerns.

‘We appreciate that the formal offer document sent to shareholders is long, complex and technical and we understand that some shareholders may find the information difficult to digest.’

These concerns have been heightened by the view that Kretinsky, 49, nicknamed the Czech Sphinx for his inscrutability, could be gaining control of Royal Mail on the cheap.

This follows last week’s announcement by regulator Ofcom that it could relax the Universal Service Obligation (USO) by making changes to the delivery of second-class letters, which would only be delivered every other working day and not on Saturdays.

The USO requires Royal Mail to deliver letters six days a week to 32 million homes for the fixed price of a stamp.

These proposals would save around £300m, suggesting IDS is worth far more than the 370p a share offered by Mr Kretinsky, as he would be the beneficiary of the concession.

Kretinsky also does not rule out further price increases for stamps. First-class stamps are already due to rise from £1.35 to £1.65 next month.

Under Ofcom’s proposals, first-class mail and parcels would continue to be delivered six days a week, but there is no limit to what Royal Mail could charge for postage. Mr Kretinsky has pledged to keep the USO in place, but only for five years.

IDS’s board has backed Kretinsky’s bid, sending shockwaves through the City and Westminster, but investors holding at least 75 per cent of IDS shares must give the green light to the takeover.

Most of IDS’s shares are owned by large institutional investors and Kretinsky is the largest shareholder with a 27.5 percent stake.

But many people, including current and former postmen, also bought (or received) shares when the coalition government privatised the service in 2013.

The sale of shares did not envisage that the postal service, which was established in 1516, would be taken over by foreigners. Royal Mail staff still own 5.5 per cent of the shares.

Some 700,000 people supported privatization.

The UK Shareholders Association said the information provided to shareholders is not easily accessible, transparent or understandable.

The spokesman said: “If IDS wants well-informed and engaged shareholders, it must make information more digestible. If it doesn’t, then the approach it has chosen is perfect.”

“If this offer is carried out according to the rules, then it would be better to change the rules.”

The government requested an investigation last month into the deal on national security grounds. No date has been given for the outcome of this investigation.