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| Version 5 | Version 6 |
|---|---|
| Newcastle get £133m buyout offer | Newcastle get £133m buyout offer |
| (about 1 hour 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 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. |
| Newcastle have been trying to improve its 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. | |
| If Mr Ashley completes his takeover then he will be 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. | |
| Manchester City are currently involved in talks with a number of suitors, believed to include Thailand's former prime minister Thaksin Shinawatra. | Manchester City are currently involved in talks with a number of suitors, believed to include Thailand's former prime minister Thaksin Shinawatra. |
| 'Wonderful heritage' | 'Wonderful heritage' |
| Mr Ashley said his firm St James Holdings Limited (SJHL) had bought 55.3 million shares in the club at 100 pence a share. | Mr Ashley said his firm St James Holdings Limited (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. |
| Under stock exchange rules, Mr Ashley's company now has to make a cash offer for the remaining shares - a stake of around 29.8% belonging to chairman Freddy Shepherd. | Under stock exchange rules, Mr Ashley's company now has to make a cash offer for the remaining shares - a stake of around 29.8% belonging to chairman Freddy Shepherd. |
| 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 Mr 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 represented a 19% premium on the 84p closing price of Newcastle's shares on Tuesday 22 May. | SJHL - which was set up specifically for the takeover by Mr Ashley - added that the offer price represented a 19% premium on 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. | "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." | "I am sure that, like me, they are already excited about the prospects for next season under the new manager's stewardship." |
| Bid target | Bid target |
| Mr Ashley's approach is not the first to target the club. | Mr 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. |