Former Eddie Stobart owner raises £9m for transition into investment firm

A UK logistics firm has announced that it has raised £9m as it aims to transition to an AIM investing company.

Eddie Stobart Logistics, which holds a 49 per cent stake in Eddie Stobart owner Greenwhitestar Acquisitions, has conditionally raised £9m in equity funding for the conversion, overtaking its goal of £6m.

The company, which will be changing its name to Logistics Development Group, is also making an open offer to raise a potential additional £7m from qualifying shareholders.

Until December last year, the company had full ownership of Greenwhitestar Acquisitions, but sold 51 per cent of its stake in order to become a ‘cash shell’ ahead of its conversion to an investment firm.

Adrian Collins, chairman of the Eddie Stobart Logistics, commented: “We are pleased to have conditionally raised £9m, more than meeting our previously-announced technical requirement to raise £6m to complete our conversion to an AIM investing company.

“Today we have also announced that we intend to change the name of the company to Logistics Development Group plc.

“This marks our transition to a growth-focused investment vehicle whilst further delineating the company from the Eddie Stobart business, in which we hold an indirect interest and which, as previously announced, has returned to profitability and firmly put its past challenges behind it.”