UPDATE 1-Eddie Stobart shareholders vote for cash injection from DBAY

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(Reuters) – Shareholders of Eddie Stobart Logistics Plc (ESLE.L) on Friday voted in favor of a takeover offer from top investor DBAY Advisors, paving the way for the embattled logistics firm to get a cash infusion that could save it from near collapse.

It will also help the British logistics firm, which provides logistics facilities to construction companies, retailers and industrials, to do business during the busy Christmas season, Eddie Stobart said.

DBAY, a private equity group, has offered to pump in 55 million pounds ($70.57 million) through payment-in-kind loan in return for a majority stake. It currently has nearly 30% stake in Eddie Stobart.

The proposal has the backing of the lenders, who were said to be willing to provide the financing needed for the deal to go through.

Media reports earlier said that Eddie Stobart had hired Deloitte to prepare the company for insolvency in case investors reject the rescue bid.

The debt-laden company has had a torrid year, in which its chief executive for four years departed shortly after it disclosed accounting errors in its financial statements.

The shareholder approval comes a day after UK’s Unite union urged them to delay the decision on DBAY’s offer and encouraged other bids to come in.

The company, known for its green and red trucks, said it intends to complete the proposed transaction “as soon as possible”.

Reporting by Yadarisa Shabong in Bengaluru; Editing by Maju Samuel and Arun Koyyur

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