(Reuters) – TVFB, a company backed by former Stobart Group boss Andrew Tinkler, on Monday proposed to increase its funding commitment for Eddie Stobart Logistics Plc <ESLE.L> by 10 million pounds ($12.83 million), aiming to fight off a rival bid from the haulier’s largest shareholder.
DBAY Advisors, which has an about 27% stake in Eddie Stobart, had last month proposed to buy a controlling stake in the group.
It bought more shares in the logistics firm on Monday and said earlier it would pump 55 million pounds into the company through a loan.
In response, TVFB, the investment vehicle owned by Tinkler, said it would pump in up to 80 million pounds into the company and added that it had bought 24.7 million of Eddie Stobart’s shares at six pence apiece on Friday.
Tinkler, who had come up with an alternative proposal for Eddie Stobart last week, is also hoping to become the executive chairman of the company as part of his proposal. He was the chairman of Eddie Stobart and chief executive officer of Stobart Group <STOB.L>, former parent of Eddie, between 2004 and 2017.
Eddie Stobart, known for its green and red trucks, has been hit by a series of bad news, including Chief Executive Officer Alex Laffey’s departure and suspension in trading of its stock in August following a financial review that delayed its half-year results.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Rashmi Aich)