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9 December 2020
Eddie Stobart Logistics plc
to be renamed “Logistics Development Group plc”
Proposed conversion to Investing Company
Conditional Placing, Subscription and Open Offer to raise up to £16.0 million
Proposed Approval of Waiver of Rule 9 of the Takeover Code
Publication of Admission Document & Notice of General Meeting
Eddie Stobart Logistics plc, an AIM-quoted cash shell which holds a 49% indirect equity interest in Greenwhitestar Acquisitions Limited (“GWSA”), the holding company of, inter alia, the Eddie Stobart, iForce, The Pallet Network and The Logistics People businesses (the “GWSA Group”), has conditionally raised £9 million via a Placing and Subscription. The Placing and Subscription are deemed to satisfy the Company’s previously-announced requirement to raise a minimum of £6 million in cash via an equity fundraising in connection with its proposed conversion to an investing company.
The Board believes it is important that the Shareholders are able to invest on the same terms as the Placing and Subscription, and the Company is therefore making an Open Offer, to raise up to an additional £7.0 million, to Qualifying Shareholders.
Adrian Collins, Chairman of the Company, commented:
“We are pleased to have conditionally raised £9 million, more than meeting our previously-announced technical requirement to raise £6 million to complete our conversion to an AIM investing company.
“Today we have also announced that we intend to change the name of the Company to Logistics Development Group plc. This marks our transition to a growth-focused investment vehicle whilst further delineating the Company from the Eddie Stobart business, in which we hold an indirect interest and which, as previously announced, has returned to profitability and firmly put its past challenges behind it.”
- The Company has raised £9 million via the Placing and Subscription in connection with the Company’s proposed conversion to an investing company.
- The Company is also making an Open Offer to raise up to an additional £7.0 million to allow Qualifying Shareholders to participate on the same terms as the Placing and Subscription.
- The Company intends to change its name to “Logistics Development Group plc” following Admission by resolution of the Board.
- Given that the Eddie Stobart trading entities are no longer controlled by the Company, the Directors believe that the change of name will help to create an appropriate distinction between the Company and its investments, removing current confusion, and will be reflective of the Company’s status as an investing company with a focus on the logistics sector.
- The net proceeds of the Placing, Subscription and Open Offer will be used to meet the Company’s general working capital requirements and to undertake due diligence on potential acquisition targets in line with the Investing Policy, and the balance will be used to acquire a proportion of the Loan Notes as the Investment Manager may decide, as well as for general corporate purposes.
- The Company announces the appointment of Investec as joint corporate broker, with immediate effect to work alongside its existing nominated adviser and joint broker, Cenkos.
- The General Meeting of the Company, notice of which is set out at the end of the Admission Document, is to be held at 11.00 a.m. on 29 December 2020 at the offices of King & Spalding, 125 Old Broad Street, London EC2N 1AR.
|Eddie Stobart Logistics plc||via FTI Consulting|
|FTI Consulting||(0)20 3727 1340|
|Nick Hasell / Alex Le May|
|Cenkos Securities Plc (Nomad & Joint Broker)||(0)20 7397 8900|
|Nicholas Wells / Giles Balleny|
|Investec Bank plc (Joint Broker)||(0)20 7597 5970|
|Gary Clarence / David Anderson|