UK haulier Eddie Stobart has unveiled plans to raise £115 million in a share placing that will allow it to develop its assets including Southend Airport in Essex.
The firm will raise the money through the sale of 77,339,766 new shares in a placing and open offer priced at £1.55p per share. The placing and open offer is subject to approval of shareholders at a general meeting on 13 May.
The group also said it plans to split itself into five divisions: Transport and Distribution, Estates, Airports, Biomass and Infrastructure Management.
“We are now a diverse company with risk and returns spread across a number of sectors. The new funding will give us the firepower to invest in those businesses which have the greatest potential, particularly Stobart Estates and Stobart Airports,” said CEO Andrew Tinkler.
In a statement, Stobart announced it has entered into an agreement to acquire the 50% of Stobart Biomass Products that it does not already own.
The company has reportedly earmarked £35 million for its Southend Airport, which it aims to make a competitor to London City Airport. Last year, the company won planning permission to extend the runway at the airport and has already built a new railway station and control tower.
Stobart also has plans to develop Carlisle Lake District Airport to create flights between London and the Lake District.
In addition, the group said it is continuing to explore a number of opportunities for the Estates Division. As part of this strategy, it has plans to acquire the Westbury property portfolio from WADI Properties, a company controlled by Andrew Tinkler and William Stobart.
Source: Stobart Group
