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Eddie Stobart Logistics saved after DBay offer is voted through

Chief executive Sebastien Desreumaux saying the deal puts the haulier on “a stable footing”

Eddie Stobart Logistics PLC -

Eddie Stobart Logistics PLC (LON:ESL) has been saved from liquidation by shareholder DBay Advisors after other investors backed a financing and acquisition package for the haulier.

DBay, which already owns 10% of the shares, offered to inject £55mln in the form of high-interest loan notes in return for a 51% stake.

Shareholders “overwhelmingly” voted in favour of the DBay proposal, the company said in a statement on Friday afternoon, with chief executive Sebastien Desreumaux saying the deal puts it on “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.”

The DBay proposal was chosen over a rival offer from former boss Andrew Tinkler, who owns a 6.5% stake in the company and had put forward an alternative rescue package that included a £70mln share issue to shore up the balance sheet and restore liquidity. This offer was effectively turned down earlier this week.

Shares in loss-making Eddie Stobart Logistics, which has around £200mln of debt, were suspended in August after a £2mln black hole was found in its accounts, sparking a review of its revenue policy.

Tinkler welcomed that a rescue package had been agreed and said: “I hope the company can return to its former glory and the board continue to work in the interests of all stakeholders to help this iconic business thrive again."

Quick facts: Eddie Stobart Logistics PLC

Price: 7.75 GBX

AIM:ESL
Market: AIM
Market Cap: £29.4 m
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