Ex-Stobart boss proposes ‘alternative’ deal in haulage group takeover

Former Stobart Group boss, Andrew Tinkler, says he can offer a better alternative to the current offer for struggling Warrington-based haulage group Eddie Stobart Logistics.

Mr Tinkler today (November 26) announced an alternative proposal to the deal Eddie Stobart entered into with Isle of Man-based DBay Advisers earlier this month, involving a £55m cash injection to rescue the group.

Eddie Stobart is holding a general meeting in London on December 6, to approve the DBay plan.

Rival haulier Wincanton announced late yesterday (November 25) that it had decided not to proceed with an offer for Eddie Stobart, following a period of due diligence.

In October Mr Tinkler had issued a ‘no intention to bid’ statement.

But today Mr Tinkler’s TVFB company announced it had formulated an alternative proposal to DBay’s, which it described as “not in the best interests of ESL shareholders”.

The stock exchange statement said: “TVFB has now had the opportunity to review the terms of the DBay proposals and strongly believes that these proposals are not in the best interests of ESL shareholders.

“TVFB has been developing an alternative proposal, which it believes is considerably more advantageous to ESL’s shareholders and also its lenders, and which has been submitted to ESL and its advisers.

“A major component of this alternative proposal includes an equity fundraising from new investors and existing ESL shareholders of up to £70m to deleverage its balance sheet and restore liquidity, thereby immediately returning ESL to a much healthier financial position.

“TVFB already has significant commitments towards the equity funding, including a significant amount to be provided by Andrew Tinkler, who was CEO of ESL until 2014.”

TVFB said it believes it has identified, and can fix, the issues that have contributed to the profits decline seen in the core transport business in recent years.

“TVFB has prepared a detailed business plan, which shows the effect of various initiatives it proposes ESL should implement, and is confident that operating margins and growth can return to the levels last seen when Andrew Tinkler stepped down as CEO,” it said.

It added it is continuing its discussions with institutional and other investors in relation to its alternative proposal.

Eddie Stobart has not commented on TVFB’s statement.

The DBay deal announced on November 15, revealed that it would buy a 51% stake of a new entity that would then become the holding company for Eddie Stobart.

Existing Eddie Stobart investors’ own shares in the firm will be turned into part of a 49% stake in the holding company.

The deal means the firm is being sold at a huge discount to Eddie Stobart’s share price in August, when it suspended shares over an ongoing accounting scandal.

At the time the shares were valued at 71p, giving the business a value of almost £270m.

Mr Tinkler had been chief executive of the Stobart Group, which at the time included the Eddie Stobart division which was then divested in 2014 as a separate entity.

Last June he was ousted in a bitter boardroom battle in which he tried to unseat chairman Iain Ferguson.

An acrimonious High Court case ensued, which was eventually decided in favour of the Stobart Group earlier this year.