DBAY Advisors offers to buy controlling stake in Eddie Stobart Logistics and inject £55m of finance

Eddie Stobart Logistics (ESL) has confirmed that private equity investor DBAY Advisors has submitted a proposal to acquire a controlling interest in the group which would see it inject around £55m into the company’s operations.

Under the terms of the proposal, DBAY would acquire a 51% stake, with existing shareholders having a 49% interest. It is also proposing an injection of approximately £55m of financing into the group’s operations to “be used to provide necessary liquidity.”

In a Stock Exchange announcement on Wednesday 13 November, which was made in response to press speculation of a deal, the group said: “The Board of Eddie Stobart is considering the proposal together with its advisers. 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. A further announcement will be made as and when appropriate.”

Wincanton, which expressed an interest in the company said it is continuing its due diligence “on the merits of a potential combination” adding that there was “no certainty” an offer will be made. Wincanton has until 5pm on 15 November to make a rival offer.

DBAY owned 51% of Eddie Stobart before it floated on the Stock Exchange in 2017. By October this year its holding had reduced to 11%.

Former ESL boss Andrew Tinkler’s company TVFB made a ‘no intention to bid’ statement last month, but has left a number of conditions in place that could see him return to the table at a later date.