6th Nov 2023 11:58
(Alliance News) - DX Group PLC on Monday announced the opening of a new central hub in Nuneaton, England, while HIG European Capital Partners LLP continues to work on its possible offer for the company.
The Slough, England-based parcel delivery company said the new hub is in a former Tuffnells Parcels Express Ltd depot, one of 15 acquired by DX after Tuffnells went into administration in late June.
DX said the Nuneaton property will primarily serve its Parcels business, adding further capacity to support DX during peak seasonal periods. It will also "improve operational efficiencies" by reducing carbon emissions and stem mileage.
"We have now reopened all but one of the 15 former Tuffnells depots that we took on at the end of June and I am pleased with the efficiency and speed with which we have successfully integrated them into our networks," commented Chief Executive Officer Paul Ibbetson. "The creation of an efficient depot network is key to our growth plans over the short to medium term."
Also on Monday, London-based HIG European Capital said it has received further letters of intent from Lloyd Dunn and Gatemore Capital Management LLP, in support of the possible offer for DX.
The previous letters of intent, which would have expired on Monday, replaced the original letters of intent HIG received in September.
HIG European said that according to the latest letters of intent, both Gatemore and Lloyd Dunn intend to provide hard irrevocable undertakings supporting any cash offer of at least 48.5 pence per DX share.
Such an offer is subject to the unanimous endorsement of the DX board on or before November 21.
However, HIG European cautioned that there is no guarantee that it will formally submit an offer.
Shares in DX were down 0.5% at 44.10p on Monday around midday in London.
By Emma Curzon, Alliance News reporter
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