18th Oct 2019 08:09
(Alliance News) - Wincanton PLC on Friday said it is considering a possible combination with Eddie Stobart Logistics PLC, though it has yet to make a proposal.
Eddie Stobart Logistics, which is based in Cheshire, confirmed it has given due diligence access to third-party logistics firm Wincanton.
This marks yet another suitor for Eddie Stobart, which is still in takeover talks with DBAY Advisors Ltd. TVFB Ltd, which is controlled by former Stobart Group Ltd boss Andrew Tinkler, was also mulling an offer but has since changed its mind.
Wincanton said: "No proposal has been made by Wincanton to Eddie Stobart as to the terms of any potential offer, and there can be no certainty that any offer will be made to Eddie Stobart shareholders."
Wincanton must make an offer or else announce it plans not to make one by 1700 GMT on November 15. The deadline can be extended with Takeover Panel consent.
Eddie Stobart issued a profit warning and suspended dividend payments in mid-September, saying adjusted operating profit for its financial year ending November 30 would be significantly below board expectations.
The company put weak performance down to delays in implementing operational efficiencies, provisions against underperforming contracts, and lower than planned property utilisation. The company also said at that time it was considering an equity raise. Though no longer in acquisition talks with TVFB, the two firms are still discussing a refinancing deal.
Shares in Eddie Stobart are currently suspended from trading on the LSE.
By Anna Farley; [email protected]
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