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Ashley to take over Newcastle Utd

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Billionaire businessman Mike Ashley is set to take control of Newcastle United after chairman Freddy Shepherd agreed to sell his 28% stake in the club.

 

Mr Ashley, who runs the Sportsworld chain and Lillywhites, is to pay £37.6m for the shares - a move that values the club at £131m.

 

Last month his company, St James Holdings, bought 41.6% of the club's shares from Sir John Hall's family.

 

The Newcastle board has urged other shareholders to sell to Mr Ashley.

 

Mr Shepherd, who is expected to stay on at the club in some capacity, said that Mr Ashley and his company would be "excellent custodians of Newcastle United's heritage and will provide the best opportunity for the club to flourish in the future, to the benefit of the company and its fans".

 

Rich history

 

Newcastle have been trying to improve their position in the Premiership and fans have been getting increasingly frustrated with the team's performance.

 

Sam Allardyce recently replaced Glenn Roeder as manager of the club.

 

It was the third managerial change the Magpies have undergone in less than three years.

 

This season the club finished just five points above the relegation zone, having set a target of a European spot at the start of the campaign.

 

The club has a rich history, having won the FA Cup on six occasions and the league title four times, but it has failed to win any major silverware for 38 years.

 

Mr Ashley will become one of a number of large investors who have been buying stakes in English and Scottish football clubs - that have included Manchester United, Liverpool, Aston Villa and West Ham.

 

His approach is not the first that has targeted the club.

 

Last year the Belgravia Group investment fund said it was considering a bid - but then dropped its plans in January, saying it had failed to agree a price and transaction structure.

 

Meanwhile, in December last year, hedge fund Polygon tried to take over the club, but pulled out of negotiations a month later.

 

In October 2006, Newcastle United announced a £12m financial annual loss after heavy investment in players and a fall in revenues as a result of its failure to qualify for Europe.

 

Source: http://news.bbc.co.uk/1/hi/business/6729215.stm

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Newcastle chairman Freddy Shepherd has agreed to sell his 28 per cent stake in the club to Mike Ashley.

 

Billionaire businessman Ashley, the 25th wealthiest man in the UK, bought a 41.6 per cent stake in Newcastle from Sir John Hall and his family a fortnight ago.

 

Ashley has now struck a deal with Shepherd to take his shares, with the sale raising his holding in The Mappies to a little under 70 per cent.

 

He needs to acquire 75 per cent to take full control at St James' Park, and the Newcastle board have recommended that Ashley's offer of 101 pence per share be accepted by the remaining shareholders.

 

Shepherd, who will receive more than £37.6million for his family's stake, is expected to remain as chairman.

 

Only last month Shepherd claimed Newcastle was an impossible club to buy and vowed never to sell his stake.

 

However, his stance then softened and he has agreed to sell after listening to Ashley's plans for the club.

 

A statement issued by Shepherd read: "The offer from SJHL (St James Holdings Limited - Ashley's company) is at a level which fully reflects both the performance of Newcastle and its prospects and ambitions for the future.

 

"The board believes that SJHL and Mike Ashley will be excellent custodians of Newcastle United's heritage and will provide the best possible opportunity for the club to flourish in the future, to the benefit of the company and its fans.

 

Source: http://home.skysports.com/list.aspx?hlid=4...S+MAGPIES+STAKE

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FOR IMMEDIATE RELEASE

 

Recommended Cash Offer by St James Holdings Limited for

Newcastle United PLC

 

On 23 May 2007, St James Holdings Limited ("SJHL") announced that it had acquired 55,342,223 Newcastle United PLC ("Newcastle United", the "Company" or the "Club") shares, representing approximately 41.6 per cent. of the issued share capital of Newcastle United, from members of Sir John Hall's family at a price of 100 pence for each Newcastle United share.

 

In accordance with the provisions of Rule 9 of the Takeover Code, SJHL also announced that it intended to make a cash offer for all of the issued and to be issued share capital of Newcastle United which was not already owned by SJHL, and that SJHL intended to seek a recommendation of the offer from the board of Newcastle United.

 

Further to that announcement, SJHL and Newcastle United are pleased to announce that they have agreed the terms of a recommended cash offer by SJHL for all of the issued and to be issued share capital of Newcastle United not already held by SJHL or any party acting in concert with SJHL at an offer price of 101 pence per Newcastle United share (the "Offer"). The board of Newcastle United has unanimously recommended that Newcastle United shareholders accept the Offer.

 

Irrevocable undertakings

 

SJHL has received irrevocable undertakings from Shepherd Offshore Limited, a company connected with William Frederick Shepherd and Bruce Stewart Shepherd, and Timothy Revill, the independent non-executive director of Newcastle United, to accept the Offer in respect of a total of 37,288,959 Newcastle United shares representing, in aggregate, approximately 28.0 per cent. of the existing issued share capital of Newcastle United. These undertakings will cease to be binding only if the Offer lapses or is withdrawn and will remain binding in the event that a higher competing offer for Newcastle United is made.

 

Commenting on the offer, Freddy Shepherd, Chairman of Newcastle United, said:

 

"The time since Newcastle's flotation in 1997 has seen a radical transformation in the Club and its fortunes, with the Club now being one of the 20 wealthiest clubs in Europe with one of the finest stadiums in European football, a premier league participant and a regular participant in European UEFA competitions with a fantastic fan base.”

 

"The offer from SJHL is at a level which fully reflects both the performance of Newcastle and its prospects and ambitions for the future. The Board believes that SJHL and Mike Ashley will be excellent custodians of Newcastle United's heritage and will provide the best possible opportunity for the Club to flourish in the future, to the benefit of the Company and its fans."

 

SJHL intends to post the offer document in respect of the Offer and the form of acceptance to Newcastle United shareholders on 7 June 2007.

 

Kaupthing Singer and Friedlander Capital Markets Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for SJHL and no-one else in relation to the Offer and other matters described in this announcement and will not be responsible to anyone other than SJHL for providing the protections afforded to clients of Kaupthing Singer and Friedlander Capital Markets Limited or for providing advice in relation to the Offer or in relation to the contents of this announcement or any transaction or arrangement referred to herein.

 

Hawkpoint Partners Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Newcastle United and no-one else in relation to the Offer and other matters described in this announcement and will not be responsible to anyone other than Newcastle United for providing the protections afforded to clients of Hawkpoint Partners Limited or for providing advice in relation to the Offer or in relation to the contents of this announcement or any transaction or arrangement referred to herein.

 

This announcement does not constitute an offer to sell or solicitation of an offer to purchase or subscribe for any securities pursuant to the Offer or otherwise. The Offer is being made by the Offer Document and (in respect of certificated Newcastle United shares) the form of acceptance accompanying the Offer Document, which will contain the full terms and conditions of the Offer, including details of how the Offer may be accepted. The laws of relevant jurisdictions may affect the availability of the Offer to persons not resident in the United Kingdom. Persons who are not resident in the United Kingdom, or who are subject to the laws of any jurisdiction other than the United Kingdom, should inform themselves about, and observe, any applicable requirements.

 

The Offer is not intended to be made, directly or indirectly, in, into or from Australia, Canada, Japan or the United States and the Offer will not be capable of acceptance from or within Australia, Canada, Japan or the United States. Accordingly, copies of this announcement are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in, into or from Australia, Canada, Japan or the United States and persons receiving this announcement (including custodians, nominees and trustees) must not mail or otherwise distribute or send it in, into or from such jurisdictions, as doing so may invalidate any purported acceptance of the Offer.

 

Dealing Disclosure Requirements

 

Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in one per cent. or more of any class of "relevant securities" of Newcastle United, all "dealings" in any such "relevant securities" (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the Offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Newcastle United, they will be deemed to be a single person for the purpose of Rule 8.3. Under the provisions of Rule 8.1 of the Code, all "dealings " in "relevant securities" of Newcastle United by SJHL or by Newcastle United, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.

 

A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk. "Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.

 

Enquiries:

 

Kaupthing Singer & Friedlander Tel: +44 (0)20 3205 5000

 

Nicholas How

 

Cameron Jack

 

 

Financial Dynamics Tel: +44 (0)20 7831 3113

 

Andrew Dowler

 

Jonathon Brill

 

 

Hawkpoint Partners

 

Patrick Wilson Tel: +44 (0)20 7665 4500

 

Jonathan Coddington

 

 

Brunswick

 

Jonathan Glass Tel: +44 (0)20 7404 5959

 

Conor McClafferty

 

 

Source: http://www.londonstockexchange.com/LSECWS/...&source=RNS

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Extra penny a share - excellent! an additional £10.50 for me :D

 

I reckon including dividends I've probably not lost too much on the original purchase

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Why hasnt this had more replies. its great news! I hope his ongoing role at the club is not as chairman though!

 

Sheer shock that this whole thing has actually happened? :D

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i definitely think we've sold to the right bloke. he seems a far better bet than the likes of polygon or belgravia

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Why hasnt this had more replies. its great news! I hope his ongoing role at the club is not as chairman though!

 

Sadly, it's rumoured to be just that! :D

 

I'm beginning to wonder if that was the bargaining chip that Ashley had to use to get Fred to sell.

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Well he can be chairman as long as ashley gets final say on spending, players bought etc.

 

I suppose he can just sack him when he wants too if he owns the club now

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:D

 

get.the.fuck.in

 

anyone for gin?

 

shall i have gin?

 

 

 

No, you can have a hot chocolate.

 

I actually will as well.

 

So there ;)

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:D

 

get.the.fuck.in

 

anyone for gin?

 

shall i have gin?

 

 

 

No, you can have a hot chocolate.

 

I actually will as well.

 

So there B)

 

 

 

No so there about it. ;)

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