9th Sep 2019 09:22
(Alliance News) - Distribution firm Eddie Stobart Logistics PLC said Monday it has received preliminary takeover interest from major shareholder DBAY Advisors Ltd.
In response to media reports, Eddie Stobart confirmed it had received a "preliminary expression of interest" with regards to a potential offer from asset management firm DBAY.
As of early August, Eddie Stobart reported DBAY was the third-largest shareholder in the firm with a 10% stake.
Eddie Stobart emphasised there was no certainty that DBAY would make an offer for the firm nor of what nature the offer would be. DBAY has until October 7 to either announce an intention to make an offer or not.
Eddie Stobart would not be the first London-listed firm to be taken over by DBAY, after it snapped up recruiter Harvey Nash Group PLC last November for GBP98.7 million.
The announcement follows a challenging time for the firm in recent weeks.
In late August, Eddie Stobart reported Chief Executive Alex Laffey would stand down and shares would be suspended temporarily amid a delay to interim results. The results delay was after Eddie Stobart looked to confirm the impact of accounting changes related to revenue recognition and receivables recovery.
Shares in Eddie Stobart last traded at 70.44 pence in London, valuing the market capitalisation of the firm at GBP270 million.
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