6th Dec 2019 13:46
(Alliance News) - Eddie Stobart Logistics PLC said Friday its shareholders "overwhelmingly" approved proposed financing offer from DBAY Advisors Ltd to rescue the logistics firm.
The company said under the proposed transaction, DBAY Advisors will acquire 51% stake in Greenwhitestar Acquisitions Ltd, which is currently a wholly-owned subsidiary of the company. DBAY Advisors will also inject new financing into Eddie Stobart's operations to provide necessary liquidity.
Sebastien Desreumaux, chief executive officer of Eddie Stobart, said:"The proposed transaction provides Eddie Stobart with the opportunity to move forward and look to deliver sustainable growth and profitability from a stable footing."
"Our main priority and focus is now continuing to deliver the high levels of services expected by our customers as we move into the busy Christmas period," Desreumaux said.
DBAY Advisors separately noted the shareholder approval and said that it will now take "immediate action" to secure the future of Eddie Stobart business and its staff by providing GBP75 million to the company.
DBAY Advisers, earlier on Friday, said that the UK Financial Conduct Authority approved the "change in control" application necessary for its proposed financing of Eddie Stobart.
Shares in Eddie Stobart are currently suspended from trading in London, having been so since August, amid its financial problems.
By Loreta Juodagalvyte; [email protected]
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