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Royal Mail: Secretary Of State To Exercise Call-in Power If VESA Raises Stake Holding

Royal Mail Plc (RMG.L) Thursday issued an update regarding Vesa Equity Investment S.à r.l.'s stake in the British postal service and courier company.

The company said it has received notification from the UK Secretary of State for Business, Energy and Industrial Strategy that he reasonably suspects that arrangements are in progress or contemplation which, if carried into effect, will result in VESA increasing its shareholding in Royal Mail to more than 25 percent from current 25 percent or less.

The Secretary of State has notified Royal Mail that such a step would constitute a trigger event under the National Security and Investment Act 2021 and that he is exercising his call-in power under section 1 of the NSI Act.

Royal Mail said it will fully cooperate with this review and a further announcement will be made as and when appropriate.

As per recent notification to Royal Mail, Vesa held just over 22 percent of the total voting rights in Royal Mail as of July 19.

In London, Royal Mail shares were trading at 268.30 pence, up 2.68 percent.

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