DEBT-laden Eddie Stobart today confirmed a cut-price offer from its fourth largest investor as the saga over its future rages on.
Isle of Man-based Douglas Bay Capital Fund has made a £55 million bid to buy a controlling 51% stake in the haulier known for its distinctive red and green lorries. The company’s existing investors would be left with 49%.
Stobart was valued at almost £270 million when its shares were suspended in August after an accounting scandal.
“The fund would inject £55 million of financing into the group’s operations through a PIK loan, which will be used to provide liquidity,” Eddie Stobart’s board said.
But the offer from DBAY has come under City criticism as PIK loans are risky and would increase Stobart’s already heavy debt pile. Eddie Stobart’s last available accounts in July show the company had debt of £160 million.
Stobart is also being circled by rival Wincanton. The logistics firm has until 5pm on Friday to make an offer.
