By Kyle Morris
Royal Mail PLC said Thursday that it has received notification from the U.K.'s Secretary of State for Business, Energy and Industrial Strategy that a review will be conducted of VESA's potential stake increase to more than 25%.
The postal service and courier company said that the notification said the Secretary of State reasonably suspects that a process is in progress that could result in VESA increasing its shareholding. Such a step would constitute a trigger event under the National Security and Investment Act 2021 and the secretary is exercising a call-in power as part of the act.
VESA's most recent notification to Royal Mail regarding its shareholding on July 19 showed VESA held just over 22% of the total voting rights in Royal Mail.
Royal Mail said it will cooperate with the review and a further announcement will be made in due course.
Shares in Royal Mail at 1227 GMT were up 11.10 pence, or 4.3%, at 272.40 pence.
Write to Kyle Morris at kyle.morris@dowjones.com
