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PRESS: Investor Anger At Royal Mail After US Acquisition Writedown

22nd Nov 2018 06:58

LONDON (Alliance News) - Royal Mail PLC's shareholders demanded a meeting with the postal services firm after it wrote down 85% of the value of two US businesses it acquired, the Financial Times reported on Thursday.

Royal Mail acquired Golden State Overnight in October 2016, and Postal Express in April 2017 for a combined value of GBP80 million. Last week, the FTSE 100-listed firm said it would write down their value by GBP68 million.

The FT reported that top 20 shareholders are now demanding a meeting with Royal Mail's management to discuss the company's strategy.

Royal Mail described the writedown as a "prudent" move as the two businesses are undergoing a restructuring which will see them merged.

https://www.ft.com/content/273108de-ed9d-11e8-8180-9cf212677a57


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