Royal Mail will be taken over by a Czech billionaire after it accepted a £3.5bn takeover offer.

The board of parent company International Distributions Services (IDS) on Wednesday said it has recommended an offer of 370p per share from Daniel Kretinsky.

The offer consists of 360p in cash, plus a final dividend of 2p per share and a special dividend of 8pc per share.

The bid, which is likely to attract scrutiny on national security grounds, includes a series of legally binding undertakings on public interest issues.

These include maintaining the one-price-goes anywhere service and Saturday delivery for first class letters.

Mr Kretinsky has also pledged not to force through job cuts, to protect the Royal Mail brand and to keep the company headquartered and tax resident in the UK.

The undertakings will be valid for at least five years following the completion of the deal, which requires approval from shareholders.

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