Listed investment firm Logistics Development Group has rejected an £83 million takeover offer by its fund manager DBAY Advisors.
Formerly Eddie Stobart Logistics plc, LDG has a long history with DBAY.
In 2014 Stobart Group repositioned itself as a support services business after selling its transport and distribution business to Isle of Man-based DBAY Advisors – formerly Douglas Bay Capital – for £280.8m.
In 2017, Eddie Stobart Logistics regained a public listing when it floated on London’s junior AIM market with a £572m valuation.
However the firm’s CEO Alex Laffey stepped down following a £2m accounting error in its 2018 results, and trading in its shares was suspended.
In 2019 DBAY saved it from collapse with a £55m loan which saw it gain control of 51% of the firm – but charged the company an interest rate of 18%.
At the end of 2020 it was readmitted to the AIM as an investing company managed by DBay and it changed its name to Logistics Development Group soon afterwards.
The company sold its interest in the Eddie Stobart Group to Culina Group in July 2021.
Described as one of Europe’s best-performing small-cap investors, LDG counts IT services firm sqli, logistics company WS, bakery group Finsbury and healthcare business Alliance among its portfolio.
DBAY, which doesn’t appear to be the majority shareholder in LDG any longer, initially offered 19 pence per share but increased that to 20p on 1st October.
Its independent directors – namely non-executive chair Adrian Collins and Mark Butcher – said they had carefully considered DBAY’s proposals with their advisers and their major independent shareholder.
However with its share price having climbed 37% in the last six months – to around £82m at the time of writing (9am) – they have unanimously rejected it.
Their fellow director Colin Kingsnorth – founder and director of Ursus Capital Ltd – “is deemed to be acting in concert with DBAY Advisors Limited” and not deemed independent due to his previous association with DBAY.
In 2024 Kingsnorth joined the board at the expense of Peter Nixon.
Collins said at the time: “Peter Nixon has agreed to step off the board of LDG to make way for Colin Kingsnorth… much that I welcome Colin on the board, I should like to add that it has been a pleasure to work with Peter who has been unflinching in his duties to your company and has been a pleasure to work with.
“We shall miss him, and I wish him well and hope he can take some time to improve his golf.”
DBAY has until 5pm on 5th November 2026 to either announce a firm intention to make an offer for LDG or announce that it does not intend to make an offer.
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