An investor in the running to buy Eddie Stobart has been granted yet more time to signal its intention.
Isle of Man-based international asset management firm DBAY Advisors has been granted a fourth extension to its “put up or shut up” (PUSU) deadline following the approval by the Panel on Takeovers and Mergers.
DBAY Advisors – which had been given 5pm on October 28 to either make a bid or withdraw – has now been given until 5pm on November 8 following the request made by Eddie Stobart bosses.
Discussions over a possible offer remained “ongoing”, they said.
DBAY Advisors, which already has a 10 per cent stake in the road haulage business, made its initial “preliminary expression of interest” in making an offer for entire issued, and to be issued, share capital of the company in September.
Since then, TVFB (3) Limited, the company controlled by Cumbrian tycoon Andrew Tinkler has entered and left the race to buy Eddie Stobart.
The former Stobart Group chief executive confirmed his interest in Eddie Stobart last month, in a move he said was to “make sure the business survives through this difficult time”.
However, TVFB made a “No Intention to Bid Statement” two weeks ago, effectively pulling out of the race, but leaving in place a number of conditions which could see it return to the table – including if the Eddie Stobart board agrees to an approach and if a firm offer for the company is announced by another bidder.
Last week, one of the UK's largest hauliers, Wincanton, entered the fray, having been given its own PUSU deadline of 5pm on November 15.
According to reports, Wincanton confirmed it was carrying out due diligence of the business, which was started by Eddie Stobart in Cumbria in the 1940s and was spun out of Stobart Group in 2014.
Any deal would need to be voted through by Eddie Stobart shareholders.
Eddie Stobart is currently looking to restructure its £155 million debts.
In August shares in Eddie Stobart were suspended at 70p after the company, which trades on the junior AIM stock exchange, revealed that bosses had found a £2 million accounting error.
A month later the company warned it annual profits are set to be “significantly below” expectations after a poor first half of the year due to a combination of an “adverse performance” and ambitious budget, as well as delays to a major project.
Now headquartered in Warrington, Eddie Stobart, still has a depot at Lillyhall.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here