Stobart property deal at risk as Pirc rallies investors

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Last year, the haulier set out plans to buy the WADI Properties portfolio from its chief executive Andrew Tinkler and his brother-in-law William Stobart, chief operating officer.

It is to pay £12.35 million, as well as assuming almost £89 million of bank debt.

Stobart said the portfolio had been independently valued at £98.9 million.

But the deal will go to a shareholder vote on 13
February, and Pirc has issued a long note on the deal, concluding: "There are inherent conflicts of interest in this transaction.

"The company sold these properties five years ago with bank debt of £79.82 million, and it is buying it back with net debt of £88.85 million.

"The company has not fully discussed future actions in relation to the debt and there is little discussion of how this debt is beneficial to current shareholders...

"The independent directors have provided no basis to their conclusion that the acquisition had a fair price. An abstention is recommended."