Haulier to uncouple from iconic Eddie Stobart name
Warrington-based logistics group Eddie Stobart is to drop its iconic name.
It announced it intends to become the Logistics Development Group plc, in a bid to put a turbulent recent past behind it after the company had to be rescued a year ago by Isle of Man-based DBay Advisors, and linked to its proposed conversion to an investing company.
In an update today it announced it has raised £9m through a placing and subscription in connection with its proposed conversion to an investing company.
It is also making an open offer to raise up to an additional £7m to allow qualifying shareholders to participate on the same terms as the placing and subscription.
The net proceeds will be used to meet the company’s general working capital requirements and to undertake due diligence on potential acquisition targets in line with the investing policy.
Explaining the proposals, the company said, on December 9, 2019, the company completed the disposal of an indirect 51% holding in its operating subsidiary GWSA to DBAY.
On completion of this transaction, the company ceased to own, control or conduct all or substantially all, of its existing trading business, activities or assets and the company became a cash shell.
The board is now seeking shareholder approval to become an investing company.
Chairman Adrian Collins said: “We are pleased to have conditionally raised £9m, more than meeting our previously-announced technical requirement to raise £6m to complete our conversion to an AIM investing company.
“Today we have also announced that we intend to change the name of the company to Logistics Development Group plc.
“This marks our transition to a growth-focused investment vehicle whilst further delineating the company from the Eddie Stobart business, in which we hold an indirect interest and which, as previously announced, has returned to profitability and firmly put its past challenges behind it.”
