13th Nov 2019 10:00
(Alliance News) - Eddie Stobart Logistics PLC on Wednesday confirmed a fund managed by DBAY Advisors Ltd has proposed taking a controlling stake in the firm.
The statement was made in response to "press speculation". On Tuesday, Sky News had reported DBAY was planning to make an investment at a "huge" discount to the price at which shares were suspended from trading in August, 71 pence.
Eddie Stobart on Wednesday confirmed DBAY will take a 51% stake in a new company which will become the holding entity for Eddie Stobart's operations. Existing shareholders will own the remaining 49%.
DBAY will in return inject GBP55 million of funding through a payment-in-kind loan which will "provide necessary liquidity".
There have been other suitors for Eddie Stobart, which has been grappling with delays in carrying out operating improvements, underperforming contracts, and lower-than-planned property utilisation. It issued a profit warning in September and suspended dividend payments at the same time.
Wincanton PLC in October said it was mulling a bid for Eddie Stobart, while former boss Andrew Tinkler considered a bid before pulling out.
"There can be no certainty that any binding transaction on the basis of the proposal or other offer for the company will be forthcoming. Any agreed proposal would be subject to approval of the company's shareholders at a general meeting," said Eddie Stobart on Wednesday.
"A further announcement will be made as and when appropriate."
By George Collard; [email protected]
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