* Investors "overwhelmingly" approve DBAY deal
* Wincanton had earlier ended plans to buy co
* DBAY deal will bring 75 mln stg of liquidity
* Co also had funding offer from Andrew Tinkler
(Adds percentage of votes from meeting)
By Yadarisa Shabong and Noor Zainab Hussain
Dec 6 (Reuters) - Eddie Stobart's shareholders on
Friday voted in favour of a takeover from top investor DBAY
Advisors, allowing the logistics company's green and red trucks
to continue trading.
Eddie Stobart's shareholders voted "overwhelmingly" in
favour for private equity group DBAY to pump in 55 million
pounds ($70.57 million) of new financing in return for a
majority stake, the company said.
DBAY, which currently owns nearly 30% of Eddie Stobart, has
also agreed a new 20 million pounds credit facility with the
company.
Eddie Stobart has had a torrid year, in which its chief
executive Alex Laffey departed and trading in the company's
shares were suspended following its failure to publish half-year
results on time.
Rival Wincanton last month dropped plans to make an
offer to buy Eddie Stobart, citing concerns about the target's
financial performance and liquidity.
Eddie Stobart has also scrapped its dividend and warned that
annual net debt would rise to 200 million pounds.
"The company's shareholders have approved its proposal to
provide the liquidity needed to safeguard the immediate future
of the business," DBAY Advisors said in a separate statement.
"The business will receive the necessary funding to continue
trading through the busy Christmas period," it said.
Eddie Stobart said later on Friday that 80.76% votes cast at
the shareholder meeting were in favour of the DBAY deal.
The company provides logistics facilities to construction
companies, retailers and industrials, with about 2,700 vehicles,
5,000 trailers and 43 operating centres across Britain and
Europe.
RETURN TO STRENGTH
Investor approval comes a day after the Unite union urged
Eddie Stobart to delay the decision on DBAY's offer and
encourage other bids.
Eddie Stobart also has a funding offer on the table from its
former group boss Andrew Tinkler. Tinkler was the chairman of
Eddie Stobart and chief executive officer of Stobart,
former parent of Eddie, between 2004 and 2017.
Tinkler's investment vehicle TVFB said it was pleased to see
the rescue package agreed.
"I hope the company can return to its former glory," Tinkler
said in a statement.
Eddie Stobart said the DBAY proposal had the support of its
lenders, which were said to be willing to provide the financing
needed for the agreement.
The lenders had warned that if any alternative proposal
needed more funding, they would not provide it.
Eddie Stobart said the two parties would complete the
proposed transaction as soon as possible.
($1 = 0.7794 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Maju
Samuel/ Arun Koyyur/Jane Merriman)
