Private equity firm offers to take controlling stake in Eddie Stobart
By Michele Maatouk
Date: Wednesday 13 Nov 2019
(Sharecast News) - Eddie Stobart said on Wednesday that private equity firm DouglasBay has offered to buy a controlling interest in the transport and logistics company.
Under the terms of the proposal, DouglasBay would buy a 51% stake in a new entity that would become the holding company for the group's operations, in which Eddie Stobart's existing shareholders would have a 49% stake.
DouglasBay would inject around £55m of financing into Stobart's operations "to provide necessary liquidity".
The company said it was considering the proposal together with its advisers. Stobart added that there can be no certainty any binding deal will be reached or that another offer will be forthcoming.
Last month, warehouse and logistics business Wincanton said it was doing due diligence on the merits of a potential combination with Eddie Stobart.
The company said in its half-year results released earlier on Wednesday that it was still performing due diligence. It has until Friday to either announce a firm intention to make an offer for the group or walk away.
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