Eddie Stobart “disappointed” with Wincanton decision

Eddie Stobart Logistics has said it is “disappointed” that Wincanton has decided not to make an offer for the business.

Yesterday Wincanton said it would not make an offer for Eddie Stobart, citing issues regarding the troubled 3PLs “financial performance and ongoing liquidity”.

In response Eddie Stobart said it had granted Wincanton access to “extensive due diligence” that was “commensurate with its status as a strategic competitor to Eddie Stobart” since mid-September 2019.

It said that this access included provision of comprehensive company information, alongside multiple meetings with senior and divisional management of Eddie Stobart for both Wincanton and its advisers.

Eddie Stobart said that its board had actively encouraged Wincanton to put forward a proposal. However, it said, at no stage of their involvement in the process was any offer forthcoming, nor any indication as to the terms of any offer should one be forthcoming.

It continues to recommend a proposal from DouglasBay Capital (DBAY) for a conditional sale and purchase agreement of a 51 per cent stake in the company.