Logistics Development redeems £10m investment, plans tender offer

Investing company Logistics Development Group announced the redemption of its £10m investment in Nash Squared's loan notes on Tuesday, following the disposal of the NashTech division by the Power of Talent Midco.

The AIM-traded firm, formerly known as Eddie Stobart Logistics, said the redemption generated a cash distribution of about £13.1m, delivering a net internal rate of return (IRR) of 36% over the holding period.

It said the proceeds were received without any associated fees, bringing the group's cash position to approximately £44m.

The board, in collaboration with its investment manager, said it was updating the company’s distribution policy.

Since transitioning to an investing company in December 2020, LDG had distributed around £27m to shareholders, primarily through share buybacks.

It said it now planned to initiate a tender offer to return up to £21m to shareholders at a proposed price of 19p per share, subject to shareholder approval.

Looking ahead, LDG said it intended to distribute 50% of net cash profits from future asset sales to shareholders, although the timing would depend on market conditions.

Additionally, from December, the firm said it would begin publishing unaudited net asset value estimates on a quarterly basis, with each update to be announced within two months of the quarter’s end.

At 1158 GMT, shares in Logistics Development Group were up 35.87% at 14.13p.

Reporting by Josh White for Sharecast.com.