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Eddie Stobart Logistics to raise up to £16 million to fund conversation to investing company
StockMarketWire.com
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AIM-quoted cash shell Eddie Stobart Logistics detailed plans to raise up to £16 million through an equity placing and open offer to support its transition to a growth-focused investment company.
The company said it would also change its name to Logistics Development Group, to mark the transition, which would require shareholder backing at a meeting on 29 December.
The net proceeds of the placing, subscription and open offer through the issue of up to 320,358,528 shares would 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.
To convert to an investing company under the market rules, the company was required to raise at least £6 million of new equity.
'The directors and DBAY, as investment manager, have considerable knowledge and experience of the sector, and consider that the Company will be able to build on the company's existing 49% indirect equity investment in the GWSA Group, creating a dynamic portfolio of investments in the logistics sector,' the company said.
On 9 December 2019, the company completed the disposal of an indirect 51% holding in its operating subsidiary GWSA - the holding company of, inter alia, Eddie Stobart, iForce, The Pallet Network and The Logistics People businesses - to DBAY.
At 9:28am: (LON:ESL) Eddie Stobart Logistics PLC share price was 0p at 9.4p
Story provided by StockMarketWire.com
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