Potential bidder for Eddie Stobart granted extra time for further talks
A bidder for the Warrington-based logistics group Eddie Stobart has been given more time to consider its takeover approach.
DBAY made a preliminary expression of interest in acquiring the shares it does not already own on September 9.
The funds vehicle, DBAY, bought 51% of the firm from the then boss, Andrew Tinkler, five years ago.
Mr Tinkler is also in discussions regarding a possible refinancing of the logistics firm.
Under stock exchange rules, DBAY had until 5pm on October 16 to either announce a firm intention to make an offer for the company or to announce that it did not intend to make an offer.
In an announcement to the stock exchange just after 5pm tonight, October 16, Eddie Stobart said discussions with DBAY regarding a possible offer remain ongoing and, to allow further time for these discussions, the board of Eddie Stobart has requested that the Panel on Takeovers and Mergers extend the date by which DBAY must either announce a firm intention to make an offer or announce that it did not intend to make an offer for the company.
The panel has now agreed to an extension to 5pm on October 28. This new deadline can be extended further with the consent of the panel, at the company’s request.
Eddie Stobart said there can be no certainty either that an offer will be made by DBAY.
The group also revealed that Mr Tinkler’s company, TVFB, which also made an approach to participate in a refinancing of the business through an equity deal on September 9, is still in discussions with the board regarding the refinancing.
However, TVFB has confirmed that it has no intention of making an offer for the company, although this could change under certain circumstances, including with the agreement of the board of Eddie Stobart, or a third party, including DBAY, announces a firm intention to make an offer.
In early September Eddie Stobart said it anticipated profits for the year to be below the board’s predictions, adding that it was looking into a number of strategies including an equity-raise to remedy the situation. It also said it would get rid of its final dividend.
Last year Mr Tinkler was involved in an acrimonious boardroom battle at the Carlisle-based Stobart Group.
His attempt to replace the firm’s chairman, Iain Ferguson, with his friend, billionaire retail magnate Philip Day, failed.
The ensuing battle led to a High Court hearing and the eventual resignation of Mr Ferguson.
