The deadline for the sale of DX Group to US equity giant HIG Capital Europe been extended to 21 November, DX announced today (6 November).
News of the extension comes as DX Group announced the opening of the 14th of 15 former Tufnells’ depots - this time in Nuneaton.
HIG Capital Europe’s interest in buying the parcel freight and logistics company was first revealed by DX Group on 11 September, with the US private equity firm given until October 9 to make a firm offer or back away from a potential deal.
Last month the deadline was extended to 8 November and today DX Group revealed that a further extension has been granted to 21 November, announcing that HIG “continues to make progress”.
However there is no guarantee HIG will be ready to make an offer or withdraw its interest by this latest deadline. DX Group stated: “This revised deadline may be extended further, at the request of the Board of DX and with the consent of the Takeover Panel, in accordance with Rule 2.6(c) of the Code.”
When HIG Capital’s interest was first revealed by DX in September this year, the group said it was prepared to recommend this latest proposal, if HIG decided to make it a firm offer, after previously rejecting other offers from HIG to buy the business.
HIG Capital’s bid was also welcomed by major shareholders Gatemore Capital Management and former CEO Lloyd Dunn at the time, with both confirming in writing their support for this latest offer to HIG Capital Europe.
The announcement of the new deadline comes as DX Group revealed the reopening of yet another former Tuffnells Parcels Express depot, this week.
Based in Nuneaton, the depot is one of the 15 depots taken on by DX from Tuffnells’ administrator in late June this year.
This latest opening will see the depot serve as an additional central hub for the group’s parcels business, part of the DX Express division.
DX Group said the depot will deliver additional capacity and assist with seasonal peaks, following continued growth of its parcels business.
The new hub is located on a 2.75 acre site in the Bermuda Industrial Estate, south of Nuneaton, and has a purpose-built 18,994 sq. ft. cross dock facility and space for 47 trailers. It is close to both the M6 and M69 motorways.
Paul Ibbetson, DX Group chief executive Officer, commented: “We continue to invest significantly in the business and are pleased to add an additional central hub in Nuneaton to serve our DX Express division.
“This new hub supports the existing hub and increases the capacity and capability of our Parcels operation, which is growing strongly, and delivers further efficiencies, environmental and customer service benefits.
“We have now reopened all but one of the 15 former Tuffnells depots that we took on at the end of June and I am pleased with the efficiency and speed with which we have successfully integrated them into our networks. The creation of an efficient depot network is key to our growth plans over the short to medium term.”