British tycoon launches Newcastle takeover
LONDON: British entrepreneur Mike Ashley on Wednesday launched a takeover bid for Newcastle United worth 133 million pounds ($265 million) after netting almost half of the English Premiership club.
"I am delighted to have this opportunity to invest in Newcastle United," said Ashley, who struck a deal to buy 41.6 percent of the club that recently appointed former Bolton boss Sam Allardyce as its new manager.
Ashley's takeover vehicle, St James Holdings Limited, has acquired more than 55 million shares, each priced at 100 pence, from Newcastle life president Sir John Hall and his family interests, according to a statement.
The size of Ashley's stake means he must make a bid, worth also 100 pence per share, for the remaining stock, of which almost 30 percent is owned by Newcastle chairman Freddy Shepherd.
"The board of Newcastle United will meet to consider the offer shortly," it said in a separate statement. "Newcastle United shareholders are urged to take no further action at this stage."
The 100 pence per share takeover offer was at a 19 percent premium to the 84 pence closing price of Newcastle shares on May 22. Newcastle shares ended at 96 pence on Wednesday.
"Newcastle United has a wonderful heritage and the passion of its fans is legendary," said Ashley, who is the founder and majority shareholder of the retailer Sports Direct International.
"I am sure that, like me, they are already excited about the prospects for next season under the new manager's stewardship."
A takeover of Newcastle would be a massive boost for the club, which despite regularly playing in front of 50,000 fans at its St James' Park stadium in northeast England, has not won a major trophy since 1969.
"Mike Ashley is a major player in the sporting world and I am convinced that he is the right person to take my place and take the club forward," Hall said on Wednesday.
"I am sure he will be good for the club and its loyal fans and indeed for the region," he added.
Glen Roeder was sacked as manager of the Magpies earlier this month after a disappointing season in which Newcastle finished 13th in the Premiership.
AFP
(China Daily 05/25/2007 page23)
