The Board of International Distributions Services plc (LSE:IDS) (the "Board") confirmed that it has received a revised non-binding proposal from EP Corporate Group a.s. ("EP Group") for the entire issued share capital of IDS not already owned by EP Group and its affiliates, namely VESA Equity Investment S.à r.l. ("Vesa Equity") (the "Proposal"). As of 14 May 2024 (being the date prior to this announcement), Vesa Equity holds 264,138,365 ordinary shares in the capital of the Company, representing approximately 27.6% of IDS' issued share capital. The total value of the Proposal (the "Total Value") represents: 370 pence per IDS share comprised of: cash consideration of 360 pence per IDS share; the final dividend in respect of the Financial Year ended 31 March 2024, which is expected to be 2 pence per IDS share (the "2024 Final Dividend") and which is expected to be paid in September 2024; and a special dividend of 8 pence per IDS share which would be conditional upon completion of the transaction (the "Special Dividend").

The Proposal values the entire issued share capital of IDS at approximately £3.5 billion, and the Total Value represents a premium of approximately: 72.7% to the IDS share price of 214.2 pence as at close of business on 16 April 2024, being the day immediately prior to the start of the offer period; 63.2% to the one-month volume-weighted average price as at close of business on 16 April 2024, being the day immediately prior to the start of the offer period; and 53.1% to the twelve-month volume-weighted average price as at close of business on 16 April 2024, being the day immediately prior to the start of the offer period. The Proposal follows significant negotiation including a number of earlier proposals from EP Group (the first of which was made on 9 April 2024 at a price of 320 pence per share in cash). The Total Value represents an increase of 15.6% on EP Group's original proposal.

Both Royal Mail and GLS perform critical functions in the markets where they operate, and the Board is particularly mindful of Royal Mail's unique heritage and responsibilities as the designated Universal Service Provider in the United Kingdom and a key part of national infrastructure. In assessing the Proposal, the Board has also been very mindful of the impact on Royal Mail and GLS and their respective stakeholders and employees, as well as broader public interest factors. Having considered the Proposal, the Board has indicated to EP Group that it would be minded to recommend an offer to IDS shareholders should an offer be made at the level of the Total Value, subject to satisfactory resolution of the final terms and arrangements.

EP Grouphas confirmed that the Proposal is not subject to any financing pre-condition. Accordingly, the Board will continue to engage in discussions with EP Group to explore the Proposal in further detail and allow for each party to complete a limited period of confirmatory due diligence on the other.