Newcastle United set to delist from stock market

[Jimbo 175]

Billionaire businessman Mike Ashley is on course to withdraw football club Newcastle United from the stock market after lifting his stake to 77.06%.

Once Mr Ashley owns more than 75% of Newcastle's shares, stock market rules mean that the remaining investors are obliged to sell their stakes to him.

 

Mr Ashley runs the Sportsworld chain and Lillywhites.

 

Newcastle is the latest club to succumb to a takeover as investors are lured by the world's richest football league.

 

In the past few years, investors, mostly from overseas, have swooped for clubs including Manchester United, Liverpool, Aston Villa and West Ham.

 

Last month Mr Ashley's company, St James Holdings, bought 41.6% of Newcastle's shares from Sir John Hall's family.

 

Mr Ashley later convinced chairman Freddy Shepherd to sell his 28% stake in the Premiership football club.

 

Analysts said that football clubs were seen as cash cows by many investors, especially after they re-negotiated overseas TV rights.

 

Despite not winning any silverware since 1969, Newcastle is one of the UK's best-known and best-supported clubs, giving owners a large market for merchandising

 

Newcastle is Europe's 13th wealthiest club by annual revenues.

 

The club, famous for its black and white strip and Magpies nickname, has sell-out crowds of more than 50,000 at most home games.

[Mucha27 0]

Anyone care to explain what difference being listed on the stock market makes? or is it just that everyone has to now sell

Edited June 15, 2007 by Mucha27

[Lazarus 0]

[ewerk 31604]

I thought the figure was 75% to delist and 90% to force everyone to sell up?

[tinofbeans 91]

Anyone care to explain what difference being listed on the stock market makes? or is it just that everyone has to now sell

 

quick and easy answer is it means we don't have to pay the plc shareholders massive dividends.

 

someone with a better grasp of finance may be able to advise better than me.

[Rob W 0]

Anyone care to explain what difference being listed on the stock market makes? or is it just that everyone has to now sell

 

quick and easy answer is it means we don't have to pay the plc shareholders massive dividends.

 

someone with a better grasp of finance may be able to advise better than me.

 

 

not so - all it means its its very hard for anyone to buy and sell their shares anymore

 

plus we don't have to spend ++£1 million a year on reporting and meeting LSE rules

 

we can still pay a divi if we want to - the LSE don't have any rules on paying a divi and a lot of listed companies don't

 

basically it means anyone who wants to get any value will sell to Ashley and then he'll be able to force the last 10% to sell up

[Craig 6703]

The request that Ashley will make to the stock exchange will be two-fold. Firstly it will be that the club is delisted from the stock exchange, secondly that trading ceases on shares in Newcastle United. So it'll not just be very hard to buy or sell shares, it'll be impossible. By the looks of this following announcement, the club expect this to occur on July 18th.

 

St James Holdings Limited Statement - June 15, 2007

 

OFFER UNCONDITIONAL IN ALL RESPECTS

 

St James Holdings Limited ("SJHL") is pleased to announce that its Offer for all of the issued and to be issued share capital of Newcastle United PLC made on 7 June 2007 has become unconditional as to acceptances.As there were no other conditions to the Offer, the Offer is hereby declared unconditional in all respects.

 

As at 11.00 a.m. (London time) on 15 June 2007, valid acceptances of the Offer had been received in respect of 40,384,262 Newcastle United Shares, representing approximately 30.34 per cent. of the existing issued share capital of Newcastle United.This includes acceptances in respect of 37,288,959 Newcastle United Shares (representing approximately 28.01 per cent. of the existing issued share capital of Newcastle United) which were received pursuant to irrevocable undertakings provided by Shepherd Offshore Limited, the company which holds the Shepherd family's Newcastle United Shares, and Timothy Revill, a non-executive director of Newcastle United.

 

In addition, SJHL holds 55,342,223 Newcastle United Shares, representing approximately 41.58 per cent. of Newcastle United's existing issued share capital, which were acquired from Wynyard (Guernsey) Limited, Cameron Hall Developments Limited and Cameron Hall Developments Limited Executive Pension Scheme (the ultimate beneficial owners of each of which are members of Sir John Hall's family) on 23 May 2007.

 

A further 6,848,960 Newcastle United Shares that were acquired through share purchases made on SJHL's behalf by Kaupthing Singer & Friedlander since posting the Offer Document have been certified as meeting<SPAN> the requirements of Rule 10 of the City Code, and can therefore be counted as valid acceptances under the Offer.

 

Therefore, as at 11.00 a.m. (London time) on 15 June 2007, SJHL owned, controlled or had received valid acceptances in respect of a total of 102,575,445 Newcastle United Shares, representing approximately 77.06 per cent. of the existing issued share capital of Newcastle United.

 

As set out in the Offer Document, SJHL now intends to procure the making of an application by Newcastle United to the London Stock Exchange for the cancellation of trading of Newcastle United Shares and to the UKLA for the cancellation of Newcastle United's listing, both of which are expected to take effect on or around 18 July 2007.

 

Furthermore, if SJHL receives valid acceptances of the Offer in respect of, or otherwise acquires, 90 per cent. or more of the Newcastle United Shares to which the Offer relates, SJHL will seek to acquire compulsorily the Newcastle United Shares for which it has not received valid acceptances of the Offer or otherwise acquired, pursuant to sections 974-991 of the Companies Act 2006.

 

Newcastle United Shareholders who have not already accepted the Offer should follow the procedures set out in the Offer Document posted to Newcastle United Shareholders on 7 June 2007 if they wish to accept the Offer.Further copies of the Offer Document and Form of Acceptance are available to Newcastle United Shareholders who are entitled to receive these documents by calling Capita Registrars on 0870 162 3121 (or, from outside the United Kingdom, +44 20 8639 3399) between 9.00 a.m. and 5.00 p.m. (London time), Monday to Friday (excluding UK public holidays).

 

The first closing date of the Offer is 1.00 p.m. (London Time) on 28 June 2007.

 

The consideration due to accepting Newcastle United Shareholders is expected to be despatched either on or before 12 July 2007, in respect of acceptances valid and complete in all respects and received not later than 1.00 p.m. (London time) on 28 June 2007, or within 14 days of the date of receipt of further acceptances which are valid and complete in all respects.

 

Terms defined in the Offer Document dated 7 June 2007 have the same meaning in this announcement.

 

Source: http://www.nufc.premiumtv.co.uk/page/NewsD...1053664,00.html

[Matt 0]

You won't be able to sell shares via LSE. Shares could still be sold privately.