DX puts John Menzies merger behind it as shares resume trading

 
Oliver Gill
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DX had hoped to merger its distribution arm with John Menzies (Source: DX Facebook)

Delivery firm DX is set to kick off plan B of its transformation as shares in the troubled firm resume trading this morning.

DX had hoped to resize its distribution arm by merging with logistics firm John Menzies.

But last week John Menzies walked away from the deal amid concerns over DX's trading.

"The DX board is now pursuing business transformation on a stand-alone basis. As stated in the announcement, this approach has the support of both DX's major shareholder [Gatemore Capital] and its bankers, and discussions on financing options continue," the Aim-listed firm said in a statement.

Read more: John Menzies ditches deal with DX after "further financial due diligence"

Last month DX cleared out its board, with both the chief executive and finance head departing.

The company said this morning it will continue to pursue Ron Series, who resized rival Tufnells, as chairman.

"It is expected that this appointment will be confirmed in the near-term," the group said.

DX said the appointment of Lloyd Dunn, Paul Goodson and Russell Black as non-execs would follow "shortly after" securing Series' services.

The cost of the aborted partnership with John Menzies will be revealed in DX's full-year results, due to be announced in the final quarter of 2017.

Read more: Aim-listed DX under investigation by London police

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