Eddie Stobart shareholders approve DBAY takeover

Warrington-based Eddie Stobart Logistics Plc said on Friday its shareholders voted in favor of a takeover from major shareholder DBAY Advisors.

Eddie Stobart said its shareholders voted “overwhelmingly” in favor of private equity group DBAY injecting £55 million of new financing in return for a majority stake.

DBAY, which currently controls around 30% of Eddie Stobart, has also agreed a new £20 million credit facility with the company. 

Eddie Stobart’s shares were recently suspended following its failure to publish half-year results on time. 

“The company’s shareholders have approved its proposal to provide the liquidity needed to safeguard the immediate future of the business,” DBAY Advisors said in a separate statement. 

“The business will receive the necessary funding to continue trading through the busy Christmas period,” it said.

Eddie Stobart also had an offer from its former group boss Andrew Tinkler.

Tinkler was the chairman of Eddie Stobart and chief executive officer of Stobart Group, former parent of Eddie, between 2004 and 2017. 

Tinkler’s investment vehicle TVFB said it was pleased to see the rescue package agreed. 

“I hope the company can return to its former glory,” Tinkler said in a statement.

Eddie Stobart said in a stock exchange statement: “The board … is pleased to announce … a resolution was passed approving a proposed transaction whereby Marcelos Limited, a wholly-owned subsidiary of DouglasBay Capital III Fund LP, a fund managed by DBAY Advisors Limited, will acquire a 51% stake in Greenwhitestar Acquisitions Limited, which is currently a wholly-owned subsidiary of the company and in turn holds the company’s interests in the trading entities of the group, and DBAY will agree to (directly or indirectly) inject approximately £55m of new financing into the Group’s operations through the Interim PIK Facility and the PIK Facility, which will be used to provide necessary liquidity …

“Shareholders voted overwhelmingly in favour of the resolutions, including approving the proposed transaction. Voting figures will be posted on the company’s website in due course.”

Eddie Stobart CEO Sébastien Desreumaux 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.”