(Alliance News) - Eddie Stobart Logistics PLC on Friday said it is still recommending the DBAY Advisors GBP55 million proposal despite Thursday's comments from TVFB.
TVFB, which is controlled by former boss Andrew Tinkler, proposed an up to GBP70 million equity raise for the haulage firm instead of the DBAY proposal on Tuesday.
Then, on Thursday, TVFB said the response from investors has exceeded its expectations and the proposed fundraise already exceeded GBP70 million. TVFB also said most shareholders it has spoken to planned to reject the DBAY proposal.
The DBAY deal, which is still favoured by Eddie Stobart Logistics, would see DBAY take a 51% stake in the firm holding Eddie Stobart's assets
Eddie Stobart on Friday said that if a general meeting vote is not successful its will face an "imminent liquidity shortfall" as well as the imminent expiry of its waiver from lender relating to breaches of its credit facility, the waiver being contingent on the DBAY deal.
According to Eddie Stobart Logistics, its lenders have supported the deal and agreed to provide financing arrangements for the DBAY proposal to proceed, but will not provide any more funding if it falls through, meaning the only proposal with lender consent is that of DBAY.
"The board continues to recommend that shareholders vote in favour of the DBAY proposal at the general meeting on 6 December 2019. This proposal is the only concrete offer to date which has the support of the lenders and secures the long-term future of the company," said Eddie Stobart Logistics.
On Thursday, funds managed by DBA held a 27% stake in Eddie Stobart Logistics as of a Thursday deal, up from 10% previously.
Shares in Eddie Stobart Logistics were suspended on Friday and have been since August.
By Anna Farley; annafarley@alliancenews.com
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