Eddie Stobart Logistics plc’s £16 Million Equity Raise And Re-Admission To AIM

Osborne Clarke has advised Cenkos Securities plc and Investec Bank plc on the deal.

On 6 December 2019, ESL completed the disposal of an indirect 51% holding in its operating subsidiary to DBAY Advisors Limited. On completion of this transaction, the Company ceased to own, control or conduct all or substantially all, of its existing trading business, activities or assets and became a cash shell for the purposes of the AIM Rules for Companies (AIM Rules).

Consequently, and to avoid the Company’s admission to trading on AIM being cancelled, ESL is seeking shareholder approval to become an ‘investing company’ for the purposes of the AIM Rules and apply for re-admission to trading on AIM.

In conjunction with the conversion to an investing company, the Company has conditionally raised £16 million (before expenses) of which the placing has raised £3.5 million, the subscription has raised £5.5 million and up to approximately £7 million is available to be raised through an open offer. The fundraising is conditional upon shareholder approval. The market capitalisation of the Company upon re-admission to AIM will be £35 million at the issue price.

Cenkos Securities acted as nominated adviser, joint broker and joint bookrunner and Investec Bank acted as joint broker and joint bookrunner in connection with the fundraising.

The Osborne Clarke team that advised Cenkos and Investec on the transaction was led by Partner Jonathan King (Picture) who was assisted by Senior Associates Ed Nisbet and Stuart Miller.

Involved fees earner: Jonathan King – Osborne Clarke; Stuart Miller – Osborne Clarke; Ed Nisbet – Osborne Clarke;

Law Firms: Osborne Clarke;

Clients: Cenkos Securities; Investec Bank Plc;