Shares of Eddie Stobart Logistics PLC (LON: ESL) surged 23.9% after the company’s parent company Stobart Group announced that it was changing its name to Esken Ltd after selling the Eddie Stobart and Stobart trademarks to Eddie Stobart Logistics PLC for 10 million.
Stobart Group agreed to change its name by February following the transaction, but its shareholders still have to approve the name change during a general meeting scheduled for February 3.
Investors were pleased by the development that will create a tangible separation between the two companies whose separation process has been ongoing for a few months now.
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Eddie Stobart logistics is also set to change its name to Logistics Development Group PLC after its shareholders approved its conversion to an investing company focused on logistics assets; the company will be managed by DBAY Advisors.
The two companies are looking to expand their presence in different niches this year and I will be on the lookout for any further developments.
Eddie Stobart Logistics raised $10 million via an open share offer in late December and is in a strong financial position at the start of 2021.
Eddie Stobart share price
Eddie Stobart shares rallied 23.9% to trade at 11.9p having risen from Friday’s closing price of 9.6p.