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Newcastle get £133m buyout offer Newcastle get £133m buyout offer
(30 minutes later)
Billionaire businessman Mike Ashley has launched a £133.1m ($263m) offer for Newcastle United football club. Billionaire businessman Mike Ashley has launched a £133.1m ($263m) offer for Newcastle United Football Club.
The offer came after the retail entrepreneur said he had bought a 41.6% stake in the Premiership team from Sir John Hall's family for more than £55m. The offer came after Ashley said his company, St James' Holdings Ltd, bought a 41.6% stake in the club from Sir John Hall's family for more than £55m.
Newcastle has been trying to improve its position in the Premiership and fans have been getting increasingly frustrated with the team's performance. "I am delighted to have this chance to invest in Newcastle," said Ashley.
The club recently replaced its manager, the third in as many years. Stock Exchange rules state the company now has to make a cash offer for the remaining shares - around 29.8% of that belong to chairman Freddy Shepherd.
A number of large investors have been buying stakes in English and Scottish football clubs - including Manchester United, Liverpool, Aston Villa and West Ham. Ashley added: "The club has a great infrastructure, for which Sir John and the board must take much of the credit."
Manchester City is currently involved in talks with a number of investors, believed to include Thailand's former prime minister Thaksin Shinawatra. "I am pleased that Sir John has agreed to remain as life president of the club."
'Wonderful heritage' Former chairman Hall said: "I have been associated with the direction of Newcastle United for nearly 20 years.
Mr Ashley said his firm St James Holdings Limited (SJHL) had bought 55.3 million shares in the club at 100 pence a share. "In that time, I have led the club and, before I retired, led the team responsible for the modernisation of the club we all see today.
"It is now time for me to move on and let others take up the challenge of competing in the global marketplace."
Retail giant
Ashley said his firm SJHL had bought 55.3 million shares in the club at 100 pence a share.
He added that his offer priced the rest of the club's shares at the same level.He added that his offer priced the rest of the club's shares at the same level.
Earlier this year Mr Ashley earned himself more than £900m after the flotation of his Sports Direct retail chain which he set up in 1982. Earlier this year, Ashley earned himself more than £900m after the flotation of his Sports Direct retail chain which he set up in 1982.
The group runs the Sports World retail chain and Lillywhites, and its brands include Dunlop, Kangol and Karrimor.The group runs the Sports World retail chain and Lillywhites, and its brands include Dunlop, Kangol and Karrimor.
SJHL - which was set up specifically for the takeover by Mr Ashley - added that the offer price was 19% higher than the 84p closing price of Newcastle's shares on Tuesday 22 May. SJHL - which was set up specifically for the takeover by Ashley - added that the offer price was 19% higher than the 84p closing price of Newcastle's shares on Tuesday 22 May.
"Newcastle United has a wonderful heritage and the passion of its fans is legendary," Mr Ashley said in a statement.
"I am sure that, like me, they are already excited about the prospects for next season under the new manager's stewardship."
Bid targetBid target
Mr Ashley's approach is not the first to target the club. Ashley's approach is not the first to target 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.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.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 due to its failure to qualify for Europe. In October 2006, Newcastle United announced a £12m financial annual loss after heavy investment in players and a fall in revenues due to its failure to qualify for Europe.
The result was a reversal in financial fortune for the Premiership club which made a £620,000 profit the year before.The result was a reversal in financial fortune for the Premiership club which made a £620,000 profit the year before.
A number of large investors have been buying stakes in English and Scottish football clubs - including Manchester United, Liverpool, Aston Villa and West Ham.
Manchester City are currently involved in talks with a number of suitors, believed to include Thailand's former prime minister Thaksin Shinawatra.