Takeover talk

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yakandyeti
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Re: Takeover talk

Post by yakandyeti »

The Times is reporting that The London Legacy Development Corporation has asked for details of the deal. It looks like they are talking about the value of the club at the time of the transaction, not the total amount of the transaction. I can't believe that Kretinsky didn't have his lawyers looking at that in detail, I could believe that GSB didn't! Can't blame them for asking I suppose.

https://www.thetimes.co.uk/article/west ... -fmbh87k9s
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Wembley1966
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Re: Takeover talk

Post by Wembley1966 »

I wonder where the Standard got that from 2 days later!

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Re: Takeover talk

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Re: Takeover talk

Post by bonzosbeard »

Did anyone else like that Interview with our new investor on here?

You might have thought I would be disappointed we will not be throwing silly money at the team in January (and that line does sound familiar).

But no. I loved the comments in context with the whole interview. Steady progress. No Newcastle scenario going on here. Mentioned training and academy. Yes so did GSB but this guy has something different about him.

May I say (moderately) exciting times ahead.
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Re: Takeover talk

Post by GPW »

It's not really surprising. Anyone buying 27% of a company would probably have some kind of provision - be that put/call scenario or a right of first refusal. Not doing so would leave a large shareholder exposed and vulnerable to their rights and investment being threatened by the majority shareholders taking an action they cant influence. Whether those rights go into the purchase agreement or a side agreement between the shareholders it's not rocket science that there is something there.

The more interesting thing is whether the government think they have a case that a partial sale of stock triggers the penalty clause and if they do whether the burden for paying that lies on G&S or if they can palm it off onto the Club. Still, it should be very clear in the lease agreement what triggers such a penalty.
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Re: Takeover talk

Post by Essexmaniac »

bonzosbeard wrote: Fri Nov 26, 2021 12:15 pm Did anyone else like that Interview with our new investor on here?

You might have thought I would be disappointed we will not be throwing silly money at the team in January (and that line does sound familiar).

But no. I loved the comments in context with the whole interview. Steady progress. No Newcastle scenario going on here. Mentioned training and academy. Yes so did GSB but this guy has something different about him.

May I say (moderately) exciting times ahead.

Yes, you only have to refer to the previous page of this thread.
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EastleighHammer16
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Re: Takeover talk

Post by EastleighHammer16 »

Up the Junction wrote: Fri Nov 26, 2021 11:38 am As posted on here by Wembley on Wednesday:

viewtopic.php?t=178039&start=6560#p6102870
Sorry hadn’t seen it!
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Chadwell Chief
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Re: Takeover talk

Post by Chadwell Chief »

Let’s hope Kretinsky never becomes a Kretin!

Once he owns us outright I just hope to god he invests in a new training complex and the academy. That’s almost as important to me as shiny new players.
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Estuary
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Re: Takeover talk

Post by Estuary »

GPW wrote: Fri Nov 26, 2021 12:21 pm It's not really surprising. Anyone buying 27% of a company would probably have some kind of provision - be that put/call scenario or a right of first refusal. Not doing so would leave a large shareholder exposed and vulnerable to their rights and investment being threatened by the majority shareholders taking an action they cant influence. Whether those rights go into the purchase agreement or a side agreement between the shareholders it's not rocket science that there is something there.

The more interesting thing is whether the government think they have a case that a partial sale of stock triggers the penalty clause and if they do whether the burden for paying that lies on G&S or if they can palm it off onto the Club. Still, it should be very clear in the lease agreement what triggers such a penalty.
LLDC is the Mayors office not the government. And they are probably as clued up about this as they were about other aspects of the agreement when trying to bully the club into paying more than had been agreed towards the running costs because they had messed up their costings.
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Re: Takeover talk

Post by bonzosbeard »

Essexmaniac wrote: Fri Nov 26, 2021 12:27 pm Yes, you only have to refer to the previous page of this thread.
My bad. I thought I was up to date on all the posts but missed a page. Sorry chaps
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Re: Takeover talk

Post by WebmasterFF »

Firstly, regarding that interview - that is exactly what we want to hear. Things are going well with the team - let's not change the dynamic but spend wisely on the right people. Things which aren't so well (like the infrastructure), let's invest in it and improve it. Not a single mention of ****ing Real Estate opportunities or spouting off through a mattress seller (no disrespect to the bloke) or a fan forum.
If he is as professional as he has been with the press and his conduct through the share issue then we are on to at least a professionally run outfit instead of a circus. Let's hope he "sphinx" we are worth buying outright :winker:

Regarding the LLDC, there may be a direct difference in the valuation of the club at the time of the transaction and a value of the club AFTER the transaction. This could be what has negotiated the share price with Sully and what gets around the LLDC clause - have a low valuation of the club (especially based on club accounts during COVID), Kretinsky pays more for the shares than they are worth for to help the club, and as a result of the overpayment the club is now worth more after the transaction - would that get around the clause and would that be possible/legal?

Secondly, who would pay the windfall as technically neither Gold or Sully 'sold' their shares should would they be liable under the LLDC agreement to pay or would the club? I was under the impression that GS would have to pay the 'tax' themselves out of any final sale (with the amount to pay based on the percentage of their shares and the sale price), but what if the clause is that GS have to pay for any 'reduction' in their shares to avoid this situation - then would that mean that they would be financially worse off and that benefit Kretinsky in putting pressure on GS to sell?
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Re: Takeover talk

Post by paulhs1 »

Yep, the sale price would already have been agreed at the time of purchasing the 27%. This is a good thing as Kretinsky will know that he can invest in transfers, stadium and training ground upgrades etc before 2023 in the full knowledge that he wont be asked to pay more for the club should the value go up between now and then.
He just needs to take up the option in 2023 which he will.

The club is in effect sold and the clock is ticking down to the completion date.
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Re: Takeover talk

Post by simonirons »

Surely the LLDC will be all over this. - In their eyes. - It reeks
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Re: Takeover talk

Post by bonzosbeard »

simonirons wrote: Fri Nov 26, 2021 2:54 pm Surely the LLDC will be all over this. - In their eyes. - It reeks
With their track record in court I'm not losing any sleep.
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Re: Takeover talk

Post by paulhs1 »

simonirons wrote: Fri Nov 26, 2021 2:54 pm Surely the LLDC will be all over this. - In their eyes. - It reeks
Not really. An "option" is an extremely common agreement.

In effect, Mr Kretisnky has exchanged on the purchase but the sale does not complete until 2023.

The important point is when the sale takes place.
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Re: Takeover talk

Post by GPW »

simonirons wrote: Fri Nov 26, 2021 2:54 pm Surely the LLDC will be all over this. - In their eyes. - It reeks
If anything reeks it will be the smell of incompetence at LLDC's legal team if they put in a provision addressing a complete sale but allows partial sales and the issue of more shares as part of that. If that's all it takes to get round that clause it's pretty embarrassing.
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Re: Takeover talk

Post by Georgee Paris »

I know it’s unlikely but what happens if another billionaire comes along now and wants a piece of the action?
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Re: Takeover talk

Post by Johnny Byrne's Boots »

Georgee Paris wrote: Fri Nov 26, 2021 4:37 pm I know it’s unlikely but what happens if another billionaire comes along now and wants a piece of the action?
If said billionaire wants it bad enough he can buy out the current shareholders. There'll be a price at which they'll sell.
The Put and Call options are rights not obligations, so shouldn't add any complications.
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Re: Takeover talk

Post by paulhs1 »

Georgee Paris wrote: Fri Nov 26, 2021 4:37 pm I know it’s unlikely but what happens if another billionaire comes along now and wants a piece of the action?
Dependent on the terms of the agreement, Mr Kretinsky may even be able to sell the option to purchase to someone else.

It would no doubt depend on agreement from the current owners but if he so wanted he could sell the agreement to someone else at a higher amount then the valuation price currently agreed which could give him a sizeable profit without even ever owning the club.
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Re: Takeover talk

Post by e-20 »

GPW wrote: Fri Nov 26, 2021 4:07 pm If anything reeks it will be the smell of incompetence at LLDC's legal team if they put in a provision addressing a complete sale but allows partial sales and the issue of more shares as part of that. If that's all it takes to get round that clause it's pretty embarrassing.
Especially as we have been discussing this possibility on and off for a year or two. I remember myself saying early this year if 2023 was indeed relevant to Sullivan then we will likely hear something solid from a buyer by latest Summer 2022, expecting some deal of this pre-emptive nature would take place early if it were at all possible to pull off. Seems we have got an early Christmas present. Will certainly be interesting hearing what LLDC’s thinking about it is, though how can a scheme of this kind not have been anticipated as it crossed out minds as we willed time to pass quicker..
Last edited by e-20 on Fri Nov 26, 2021 9:33 pm, edited 1 time in total.
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