Former Stobart boss Andrew Tinkler is reportedly lining up heavyweight City support for his proposed financing package for struggling haulier Eddie Stobart.
City A.M. revealed yesterday that Tinkler was putting together a £75m financing package for the ailing firm and had the backing of 11.8 per cent shareholder the Stobart Group.
“Shareholders do take my offer seriously, and even Stobart Group has supported me on this transaction,” Tinkler said.
Tinkler has been in discussions with fund managers M&G and Ruffer to drum up support for his plan to inject £50m into the business, The Telegraph reported.
Tinkler is also understood to have been in talks with Eddie Stobart’s board about his proposed rescue offer.
His approach faces competition from hedge fund Douglas Bay Capital (Dbay) which holds a 10 per cent stake in the company.
Eddie Stobart’s board accepted an offer on Friday from Dbay to inject £55m into the business in exchange for a 51 per cent stake.
Dbay’s financing package, which would come with an 18 per cent rate of interest, is set to be voted on by shareholders in early December.
Sources close to the fund said Dbay’s offer remained the only one on the table and could be delivered in time to save the company from an expected cash crunch at the end of December.
Stobart Group chairman David Shearer has written to Eddie Stobart’s board asking them to support Tinkler’s plan, The Telegraph reported.
Rival logistics firm Wincanton is also undertaking due diligence on a possible bid for Eddie Stobart, but said it has been hampered by a lack of solid financial information.
Eddie Stobart’s shares were suspended in August after an accounting scandal. It has still not published its interim results.
On Friday, Wincanton said that without the release of the company’s accounts, “neither it, nor Eddie Stobart’s shareholders, can make an informed decision on the value of any possible transaction.”
Eddie Stobart, Dbay and the Stobart Group declined to comment. M&G and Ruffer were contacted for comment.