(Alliance News) - Eddie Stobart Logistics PLC said Friday London-listed logistics firm Wincanton PLC has been granted an extended deadline as to when it must make a firm offer for Eddie Stobart.
Wincanton now has until 1700 GMT on November 27 to make a firm offer for Eddie Stobart, or declare that it will not make an offer.
Wincanton itself said that it is continuing with its due diligence, which is focused on gaining "assurance as to the underlying profitability balance sheet and cash flow; cost saving opportunities; and the funding of working capital requirements on a short- and medium-term basis".
Earlier Friday, Eddie Stobart said private equity firm DBAY Advisors will not make an takeover offer for the full company but will provide a GBP55 million capital injection and take a 51% stake in the company's core subsidiary which holds stakes in other trading companies.
Eddie Stobart said the unit stake sale and capital injection would "ensure the continued viability of the company".
Shares in Eddie Stobart are currently suspended from trading in London, while Wincanton shares were down 3.8% at 255.00 pence on Friday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Wincanton (WIN)