Eddie Stobart gets lifeline as shareholders back rescue deal
Haulage group gets £55 million financing as investor DBAY takes majority stake
Eddie Stobart’s shareholders on Friday voted in favour of a takeover, allowing the logistics company’s green and red trucks to continue trading.
Eddie Stobart’s shareholders on Friday voted in favour of a takeover from top investor DBAY Advisors, allowing the logistics company’s green and red trucks to continue trading.
Eddie Stobart’s shareholders voted “overwhelmingly” in favour for private-equity group DBAY to pump £55 million (€65.3 million) of new financing in return for a majority stake, the company said.
DBAY, which currently has nearly 30 per cent of Eddie Stobart, has also agreed a new £20 million credit facility with the company.
Eddie Stobart has had a torrid year, in which its chief executive Alex Laffey departed and trading in the company’s shares was suspended following its failure to publish half-year results on time.
Eddie Stobart has also scrapped its dividend and warned that annual net debt would rise to £200 million.
“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 provides logistics facilities to construction companies, retailers and industrials, with about 2,700 vehicles, 5,000 trailers and 43 operating centres across Britain and Europe. – Reuters