Former Stobart chief proposed to reunite group
Andrew Tinkler wanted group to merge with logistics arm it spun off four years earlier
The businessman at the centre of the attempted boardroom coup at the Stobart Group proposed reuniting that business with the logistics division it spun off four years earlier.
In April 2018, Andrew Tinkler, a former Stobart Group chief executive who has been trying to unseat chairman Iain Ferguson, devised Project Park, to merge the Stobart Group and Eddie Stobart Logistics into one company with an enterprise value of £1.7bn in 2019.
In his proposal, he noted: “It is likely some in the market will look at this plan with scepticism as the two businesses were only separated four years ago, and Stobart Group has continued to divest its shareholding in ESL.”
Mr Tinkler sent his proposal to Philip Day, the retail billionaire who he has proposed installing as chairman of Stobart Group. In emails the Financial Times has seen, Mr Day said Project Park “looks very interesting, can see why you would want to combine! Win\Win”.
It is understood that neither Mr Ferguson nor Warwick Brady, chief executive of Stobart Group, were aware of Mr Tinkler’s plan at the time.
The proposal was made by Mr Tinkler as part of his role at Stobart Capital, a separate company devised to generate ideas for the Stobart Group.
A spokesman for Mr Tinkler said: “In fulfilling his board-appointed role Andrew generated numerous ideas at Stobart Capital to enhance shareholder value for the group.”
A spokesman for Mr Day said: “Mr Day regards this as an interesting idea and understands the rationale. But, as Mr Tinkler approached him for informal advice and a high-level view, Mr Day does not hold a settled or final opinion on the matter.”
In his proposal, Mr Tinkler said that “63 per cent of the Stobart Group shares are held by investors that also hold shares in ESL or are private investors that we know would be convinced of the deal”.
The boardroom fight has drawn in senior City figures, including fund manager Neil Woodford, who supports Mr Tinkler and whose Woodford Investment Management has a 20 per cent stake in the company.
Earlier in June, Stobart fired Mr Tinkler after he started his campaign to replace Mr Ferguson.
Stobart, which has been trying to improve its corporate governance following a spate of boardroom coups in 2013, has said it is issuing legal proceedings against Mr Tinkler alleging “breach of contract and breach of fiduciary duty”, while Mr Tinkler launched defamation proceedings against Stobart’s board this month.
Invesco Asset Management, the largest shareholder with a 25.3 per cent stake, is backing Mr Ferguson and the board.