Stobart unveils £120m fundraising
LOGISTICS firm the Stobart Group has unveiled plans for a £120m fundraising and a major reorganisation of its business.
In a statement to the stock market this afternoon the Warrington-based group said the extra cash will give it the “firepower” to invest in areas such as energy, property and its airports business.
Some £25m is earmarked for London Southend Airport and Carlisle Lake District Airport, while £32m will be spent on a biomass facility in Widnes and developments at the Mersey Multimodal Gateway.
Subject to shareholder approval it will issue 77 million new shares to a placing and open offer at 155p, up 4.6% on the closing price on April 20.
It said it had already agreed to acquire the remaining 50% share of Stobart Biomass Products – which supplies to wood-related biomass in the UK – from Penrith-based AW Jenkinson Forest Products for £20m in shares and loan notes.
The company has also taken an option to acquire the Westbury property portfolio from WADI Properties, a company controlled by chief executive Andrew Tinkler and chief operating officer William Stobart. If this goes through the group estates division will hold 16 properties with a value of £150m.
Following a strategic review Stobart is being restructured into five divisions: transport and distribution; estates; airports; biomass; and infrastructure management.
The company stressed it was committed to its Eddie Stobart transport arm, which accounts for 90% of turnover, but said its other interests would benefit from the new structure.
Mr Tinkler said: “Since listing in 2007 we have delivered consistently good performance with substantial growth in all areas of the business and also been able to invest in other areas of high growth potential such as biomass.
“We are now a diverse company with risk and returns spread across a number of sectors. The new funding will give us the firepower to invest in those businesses which have the greatest potential, particularly Stobart Estates and Stobart Airports. The restructuring will clarify and sharpen the focus, strategic aims and value of each part of the business.”
Invesco Asset Management, a subsidiary of the fund manager Invesco, has taken up 62 million of the open offer shares. If the fundraising goes through it will own 36% of the group, up from 24.9%.
Law firm Hill Dickinson advised Stobart Group on the fundraising plans.
