(Alliance News) - Andrew Tinkler on Tuesday said the funding solution proposed by Eddie Stobart Logistics PLC is not in the best interests of the firm's shareholders.
Eddie Stobart earlier in November agreed a GBP55 million lifeline from DBAY Advisors, giving DBAY a 51% stake in the company which holds Eddie Stobart's assets.
Tinkler is a former chief executive of Eddie Stobart. On Tuesday, TVFB, a firm he controls, said it believes the proposal from DBAY is "not in the best interests" of Eddie Stobart's shareholders.
It has come up with its own proposal: an equity raise of up to GBP70 million to reduce debt and restore liquidity. Tinkler said he will provide a "significant" amount of that.
"TVFB 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," said TVFB.
"TVFB has prepared a detailed business plan, which shows the effect of various initiatives it proposes Eddie Stobart should implement, and is confident that operating margins and growth can return to the levels last seen when Andrew Tinkler stepped down as CEO."
Tinkler left as CEO in 2017 and was removed by the company as an executive director in June 2018. He appealed but lost in court. Tinkler's dismissal as executive director was prompted by his move to oppose the re-election of Chair Iain Ferguson.
Shares in Eddie Stobart are currently suspended from trading in London, having been so since August.
On Monday, the trucking firm said it was "disappointed" after peer Wincanton PLC decided not to make an offer, citing concerns over Eddie Stobart's finances.
By George Collard; georgecollard@alliancenews.com
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