Eddie Stobart confirms £55m rescue bid that leaves shareholders in the cold
Eddie Stobart today confirmed that a major shareholder has made a £55m bid for a controlling stake in the company, following a report warning investors will lose out.
Douglas Bay Capital Fund wants to buy a 51 per cent stake of of a new entity that would then become the holding company for Eddie Stobart.
Read more: Wincanton chases possible merger with Eddie Stobart
Existing investors’ own shares in the firm would be turned into parts of a 49 per cent stake in the holding company, Stobart said today.
“As part of the Proposal, the Fund would (directly or indirectly) inject approximately £55m of financing into the group’s operations through a PIK loan instrument, which will be used to provide necessary liquidity,” Eddie Stobart’s board noted.
It follows a Sky News report yesterday that Dbay’s proposal would involve an underwritten share issue to gain a majority stake.
The price appears to be at a massive discount to Eddie Stobart’s share price in Augsut, when it suspended shares over an accounting scandal.
At the time shares were valued at 71p, giving it a value of almost £270m.
Stobart is already subject to interest from rival Wincanton, but Sky News reported yesterday that the logistics firm has not tabled an offer due to a lack of financial information.
Wincanton has until 5pm on Friday to make an offer.
Meanwhile ex-Stobart boss Andrew Tinkler is drawing up a competitive proposal. He told City A.M. that he is “ready to go”.
”It’s really down to the advisers and the board and the banks taking this seriously as a refinancing option.”
Read more: Eddie Stobart confirms takeover interest from Andrew Tinkler
Stobart’s lenders are currently looking at a possible restructure of the company.
Dbay first took Eddie Stobart to the public market in 2017 at 160p a share.