Former Eddie Stobart chief Andrew Tinkler has confirmed his intention to bid for Eddie Stobart Logistics (ESL) just hours after Wincanton withdrew from the fray and is warning that a rival bid from DBAY Advisors is not in the interests of ESL shareholders.
The confirmation came today in a Stock Exchange announcement from TVFB, a company controlled by Tinkler.
The statement confirmed that TVFB had submitted a bid to ESL which it described as "considerably more advantageous to ESL's shareholders and also its lenders" than DBAY's proposal.
TFVB is proposing an equity fundraising from new investors and existing ESL shareholders of up to £70m which it said would "deleverage ESL's balance sheet and restore liquidity, thereby immediately returning ESL to a much healthier financial position".
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It added that it had already garnered "significant commitments" towards the equity funding, which includes a "significant" amount from Tinkler and 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."
The company added that it had reviewed the terms of DBAY's proposals, and "strongly believes that these proposals are not in the best interests of ESL shareholders".
DBAY Advisors has offered ESL a £55m capital injection and will take a 51% stake in the company if shareholders accept its proposal. It is also offering a deal with ESL's bankers which would give it a six-month breathing space on repaying a £200m loan and more than a year's extension before it has to prove to its lenders it can service the debt.
TFVB said it is "continuing its discussions with institutional and other investors in relation to its alternative proposal".
