(Sharecast News) - Royal Mail parent company International Distribution Services confirmed on Monday that the business secretary was taking no action over shareholder VESA Equity Investment's possible increase in its stake.
The company announced on 25 August that it had received notification from the Secretary of State for Business, Energy and Industrial Strategy that he "reasonably suspected" that arrangements were in progress or contemplation which would result in the Luxembourg-based VESA increasing its shareholding from 25% or less to more than 25%.
As a result, the business secretary said he was exercising his call-in power under the National Security and Investment Act.
"The company has now been notified by the Secretary of State that no further action is to be taken under the NSI Act in relation to the potential increase by VESA of its shareholding in the company to more than 25%," IDS said on Monday.
"VESA's most recent notification to the company in relation to its holding, as disclosed to the market on 19 July, indicated that VESA held just over 22% of the total voting rights in the company at that time."
At 1028 GMT, shares in International Distribution Services were up 6.68% at 206.5p.
Reporting by Josh White for Sharecast.com.
