Troubled Eddie Stobart reveals bid has been made for business
Logistics firm Eddie Stobart has confirmed that its third largest shareholder is interested in buying the business.
The Warrington based business said it has received a preliminary expression of interest from its third largest shareholder DBAY Advisors Limited.
The news comes weeks after the departure of chief executive Alex Laffey and the suspension of trading after the firm failed to publish its half-year results in time.
DBAY Advisors Limited owns about 10.11% stake in the logistics group, whose brands include biForce, Logistics People and Speedy Freight.
A statement was issued on the Stock Market this morning.
It said: “The board of Eddie Stobart Logistics notes the recent media speculation and confirms that it has received a preliminary expression of interest from DBAY Advisors Limited in relation to a possible offer to be made by funds managed by DBAY for the entire issued, and to be issued, share capital of the company.
“There can be no certainty either that an offer will be made nor as to the terms of any offer, if made. A further announcement will be made when appropriate.”
Under Stock Market rules DBAY will have to make an offer by October 7.
Eddie Stobart is best known for its fleet of 2,700 green and red lorries.
Last month it suspending trading in its shares after an accounting investigation found profits had been overstated.
The company said there was a £2m error in its 2018 accounts, and that profits for the first half of 2019 would be “significantly lower” than forecast.
As a result chief executive Alex Laffey stood down “with immediate effect”.
Financier Neil Woodford’s fund is the largest shareholder in the business and owns about 23% of Stobart’s shares.
A review of the business is being carried out by chief financial officer Anoop Kang, who joined in April, alongside auditors PwC.
Outgoing chief executive Alex Laffey, who spent four years at Eddie Stobart, will be replaced by Sebastien Desreumaux.
Mr Desreumaux was head of the group’s retail delivery arm iForce. He joined the business just over a year ago.
Founded by Edward Stobart in 1970, the firm operates 2,700 vehicles and 43 logistical hubs in the UK and Europe, and employs around 6,600 staff.
