Official Statement; Club for sale for £56 million

[Spin Spin City 0]

Well this is definitely not over! I sat in the AGM like many others on this board and had to witness the petulant response from Delia towards one of the shareholders when asked about investment.This official statement just says how much someone would have to pay to take over NCFC. It may, but i''m not saying it is either a.) done deal with someone else?b.) Negs are still on going with PC and the board and that PC is now forcing the issue wanting to put this to bed before the season starts, and Delia wants the best price?c.) The Turners have given GR money for transfers in the region of 6 to 8 mill? With Delia happy to stay on as majority shareholder and go for the safer option and sell to the Turners (and their own consortium when the time is right?) 3 year plan anyone?Well who knows but tomorrow should be an interesting day?Would Delia and co be so stupid to turn an improved offer  from PC and face the wrath of the fans?You decide?Take the money or open the box? You know the answer?

[Old Boy 0]

It doesn''t say that it''s for sale at that price, it gives a breakdown of what the actual cost would be for someone who wants control of the Club and invest £20m in players, so it would be only (!) £36m without the money for players. Where does the valuation of the shares at £30 come from?

[Niche 0]

That is one

of the most fantastically misrepresented valuations I’ve ever seen!

 

Accepting

the £20m on players, why is the share capital valued at the nominal value of

£30? That’s only the issue value, it has no relation whatsoever to price. Certainly

the future income streams and market asset valuations of Norwich City

would not suggest that it’s value is that high, especially considering that you

are purchasing c£20m of debt.

 

I also

think it’s disingenuous to suggest that there would be an automatic debt

repayment of £16m. That may be in the contract, but I’m sure if you asked the

lenders who they felt to be a safer option to repay the debt, it would be NCFC

under Cullum, and hence the payment would be waived. If they are actually stating

that any investor must clear the debt, then why, as we are always told that it

is managed and well-structured? Why impose such a cash-flow burden on any

investor?

 

Director’s

loans at £4m is fine – it’s the only bit I don’t have an issue with!!

 

It’s

basically setting a ridiculously high bar that no one could ever feasibly want

to meet unless money was truly no object, and the investor did not mind being

completely mugged by the vendor……..

[Camuldonum 0]

The reality is that Mr Cullum wants to be the "controlling shareholder" in a PLC company he is going to have to buy all the other shareholders out - Stock Exchange rules.  If he just wants to invest he can put his money up and get a seat on the Board (which apparently he doesn''t want) or, like a big investment company, he can put someone from his company on that Board to look after his interests.

But if he wants CONTROL he is going to have to buy out all the other shareholders.  Then he will have total control. 

 

[Show Me What You Gooot! 0]

[quote user="WeAreYellows49"]

We will see how much her shares are worth next season when we are languishing in Division 1.

So where is the major investment she hinted at at the RNS?  Or was that yet more untruths?  And where are the players?  I am getting more and more wound up with her and the board.

[/quote]

Sometimes I do wonder if being relegated would be beneficial based on the information posted at the start of this topic?

As I remember Smudger once said "Short term pain for long term gain". Relegation (pain) followed by 100% takeover by Mr Cullum at a hugely discounted price (gain) perhaps?

[sturgeon220 0]

[quote user="Worst Wizard"][quote user="sturgeon220"][quote user="Worst Wizard"]That statement says more about Delias motives than anyone on here ever has.[/quote] Pardon?[/quote]Didn''t take you long did it?!) Convert all loans to shares then increase share price from £25 to £30 instant 20% markup on all shares you hold.2)Having acquired controlling interest convert NCFC LTD to NCFC PLC Thus potential buyer has no option but to buy you out completely.3)Ensure all long term debt is repayable on change of ownership. Tags another £20mill on the price.4)Having dragged the club to the depths of the old second division, weakened the playing squad beyond recognition, selling all the good players to "balance the books" and replacing them with cheapies and freebies and loans, run up twenty million pounds of debt in the Clubs name, she then announces to the World that the purchaser has to invest £20m in the squad, Double what Delia has put into the Club in ten bloody years,  of course that £20m wont be secured against securities or shares like Delia had the priviledge to do.!!!! But if you don''t put it in you''ll be exactly the sort of nasty person Delia has been saving us from for so long.She has screwed us royally here. Messed up the team, messed up the finances and now wants to walk, head up having saved the Club, with a 20% profit on her investment and leaving the new owner holding a very ugly £20m baby created by the current Boards mismanagement of income over the last ten years.She got in cheap and wants to sell top dollar and you question me?.[/quote]  Yes , I question you.  Unless you are a financial expert in which case I will bow to your expert and reasond case for the prosecution. In the mean time Point three is I believe incorrect as there would seem to an accusation that the board negotiated this clause, insted of which i believe it to be standard business practice with loans!  Please realise this is the start, not the end of negotiations.  Also if P.C. put in the £20 mil plus enough to be majority shareholder we would still be £20 mil in debt!!

[InLambertWeTrust! 0]

[quote user="Paint Me Yellow"][quote user="WeAreYellows49"]

We will see how much her shares are worth next season when we are languishing in Division 1.

So where is the major investment she hinted at at the RNS?  Or was that yet more untruths?  And where are the players?  I am getting more and more wound up with her and the board.

[/quote]

Sometimes I do wonder if being relegated would be beneficial based on the information posted at the start of this topic?

As I remember Smudger once said "Short term pain for long term gain". Relegation (pain) followed by 100% takeover by Mr Cullum at a hugely discounted price (gain) perhaps?

[/quote]

times are a desperate if you think SMUDGER is right, i think i need a lie down

[CaptnCanary 0]

Hang on a second here. This £56m statement from the club is simply pure spin (again). In actual fact the purchase cost would be just £16m for the shares (if he paid full price). The £20m of debt may well have to be paid off initially but it could easily be refinanced if necessary - Cullum would probably be able to get the new loan in place before having to pay the bank/directors back their funds. The other £20m for players just comes from todays newspaper article. So Cullum could actually assume full control of the club for £16m or less if the shareholders would accept less and then he would be free to arrange the financing and further investment in the team as he sees fit. If he wanted to stick with this original £20m outlay offer we would still have £4m for transfers which lets face it, most of us would have been happy with before this story broke.

I think the key thing here is to get Cullum on board and in control. Once he is involved I am sure he would inject more funds over time as his interest and ambition for the club increases. He would certainly offer far more potential investment than the current lot in charge. Please let this £56m statement goad him into action!

[The Fish Seller 0]

[quote user="Paint Me Yellow"][quote user="WeAreYellows49"]

We will see how much her shares are worth next season when we are languishing in Division 1.

So where is the major investment she hinted at at the RNS?  Or was that yet more untruths?  And where are the players?  I am getting more and more wound up with her and the board.

[/quote]

Sometimes I do wonder if being relegated would be beneficial based on the information posted at the start of this topic?

As I remember Smudger once said "Short term pain for long term gain". Relegation (pain) followed by 100% takeover by Mr Cullum at a hugely discounted price (gain) perhaps?

[/quote]I am convinced Cullums offer in October was put on the back burner as an escape route for Delia then forgotten by Christmas when to everyones surprise we were doing okay.

[Blofield Canary 11]

I think a few very childish and to be honest ridiculous posters on this thread really have no idea what running a business is about. I can only assume that some of the insulting anti Smith posts are from children.

Quite clearly if Mr Cullum wants to put £20 million into players he can make a gift of the money. This isn''t the case though. He wants a controlling interest of the club which happens to be worth a few million pounds weather it comes from buying out the Smiths or other directors and some of Smith''s shares. You can insult Delia as much as you want, the facts are that if Cullum is serious he has to buy 51% of the sharesAT £30 a time.

Paying back the £4 million loan which I assume is half the Turners and half the Smiths I would expect depends on whose shares he buys. If you were a shareholder being bought out you would expect any loan you had made be repaid as well. In reality I assume the Turners will stay so their loan could remain.

As already clearly posted but not taken in by others, if he wants to take control all outstanding bank loans must be repaid as you cannot expect parting shareholders to still be nominally responsible for the debt repayment. It would not be difficult to renegotiate new loans if  Cullum wantes to.

Bottom line is the £56 million is the highest price Cullum would have to pay to take control of all shares and remove all the debt from the club as well as invest £20 million into players.

The reality could be a lot less.

[canary cherub 1]

[quote user="Bury Yellow"]Like some on this thread, I don''t think it is an ''out of the way'' price for total takeover of the club with all it''s assets. As mentioned the loan is easily renegotiated and i''m sure there could be some meeting of values for the remaining costings. I don''t think this will put Mr Cullum off, indeed it may spur him on even more. He''s no fool and he has accomplished his first objective ie to smoke Delia and Michael out. Now we all know where we stand. Let battle commence![/quote]

Very good post Bury.

But while the battle is taking place, will it be business as usual regarding rebuilding the team?  At other clubs when this sort of situation has occurred it has led to a stalemate.

Frankly, I no longer care.  Whatever it takes to get D&M to relinquish their stranglehold on the club, even relegation and/or administration, bring it on!

City fans, you can do your bit too!  Give up your season tickets!  Sacrifice is never easy, or it wouldn''t be a sacrifice at all.  But now''s the time!  Seize the moment!  This is our club and we want it back!

 

[Show Me What You Gooot! 0]

[quote user="C.T"][quote user="Paint Me Yellow"][quote user="WeAreYellows49"]

We will see how much her shares are worth next season when we are languishing in Division 1.

So where is the major investment she hinted at at the RNS?  Or was that yet more untruths?  And where are the players?  I am getting more and more wound up with her and the board.

[/quote]

Sometimes I do wonder if being relegated would be beneficial based on the information posted at the start of this topic?

As I remember Smudger once said "Short term pain for long term gain". Relegation (pain) followed by 100% takeover by Mr Cullum at a hugely discounted price (gain) perhaps?

[/quote]

times are a desperate if you think SMUDGER is right, i think i need a lie down

[/quote]

I don''t think hes right, I just remember that phrase he came out with. Does hold water in this current predicament.

[Mark Smith 0]

I suspect these figures are not news to Cullum and have already been quoted to him months ago. Therefore I don''t see anything else happening on that front. He''s named his price, the club have named theirs (for better or worse). The only thing that will change things now is fan pressure, which is where todays article comes in.

[sturgeon220 0]

[quote user="jbghost"]

I think a few very childish and to be honest ridiculous posters on this thread really have no idea what running a business is about. I can only assume that some of the insulting anti Smith posts are from children.

Quite clearly if Mr Cullum wants to put £20 million into players he can make a gift of the money. This isn''t the case though. He wants a controlling interest of the club which happens to be worth a few million pounds weather it comes from buying out the Smiths or other directors and some of Smith''s shares. You can insult Delia as much as you want, the facts are that if Cullum is serious he has to buy 51% of the sharesAT £30 a time.

Paying back the £4 million loan which I assume is half the Turners and half the Smiths I would expect depends on whose shares he buys. If you were a shareholder being bought out you would expect any loan you had made be repaid as well. In reality I assume the Turners will stay so their loan could remain.

As already clearly posted but not taken in by others, if he wants to take control all outstanding bank loans must be repaid as you cannot expect parting shareholders to still be nominally responsible for the debt repayment. It would not be difficult to renegotiate new loans if  Cullum wantes to.

Bottom line is the £56 million is the highest price Cullum would have to pay to take control of all shares and remove all the debt from the club as well as invest £20 million into players.

The reality could be a lot less.

[/quote]  Now, dont you go and get all sensible on this board. I think some of them will soon be arranging a lynch mob! and they will be after you as well if you start posting well thought out posts  LOL

[ricardo 7,328]

[quote user="Hardhouse44"]Oh! Cullum used the EDP to call Delia''s bluff. Looks like Delia has just called Cullum''s back. Question is. Who has the clubs best interest at heart. £20m for players sounds so much better that what we all expect that Delia and co will rustle up. But if that’s what Delia wants she will have to live with a back lash that could make the Chase sage look like a stroll in the park.

Delia you are living on borrowed time. He want to move Norwich forward you want to keep thing how they are. 24000+ other interested parties are probably not interest in the latter.

We want football back at Carrow Road. Give it to us or you''ll eventually have to run for the hill. Now we know!
[/quote]

If nothing else Hardhouse, this has focused a few minds on what has really been happening to our club in recent years.

Perhaps a few more people will now come to realise that they aren''t doing this for the love of the club.

Those who badmouthed the realists should hang their heads tonight.

I just hope that PC is really serious about taking control, he already has the high moral ground if I correctly gauge the opinion on this Forum.

The longer this goes on, the more the pressure will grow on the Smith''s.

[jetstream 0]

"Paying back the £4 million loan which I assume is half the Turners and half the Smiths I would expect depends on whose shares he buys. If you were a shareholder being bought out you would expect any loan you had made be repaid as well. In reality I assume the Turners will stay so their loan could remain"

In the official annual accounts it states that the Turner''s £2m loan is to be repaid in the event that Smith/Jones cease to be majority shareholders, or when we get promoted, or in 2012 (I think that is the year).

[Blofield Canary 11]

I don''t think relegation would make any difference to the share price. The clubs assets are not on the pitch, they are in property.

[Stephen Frys Evil Twin 0]

So, let me get this straight...

The shareholders own the club (valued at £16m) and the club owns a debt of £16m.

That looks like a very big bargaining chip to me...

[kdncfc 0]

[quote user="CaptnCanary"]

Hang on a second here. This £56m statement from the club is simply pure spin (again). In actual fact the purchase cost would be just £16m for the shares (if he paid full price). The £20m of debt may well have to be paid off initially but it could easily be refinanced if necessary - Cullum would probably be able to get the new loan in place before having to pay the bank/directors back their funds. The other £20m for players just comes from todays newspaper article. So Cullum could actually assume full control of the club for £16m or less if the shareholders would accept less and then he would be free to arrange the financing and further investment in the team as he sees fit. If he wanted to stick with this original £20m outlay offer we would still have £4m for transfers which lets face it, most of us would have been happy with before this story broke.

I think the key thing here is to get Cullum on board and in control. Once he is involved I am sure he would inject more funds over time as his interest and ambition for the club increases. He would certainly offer far more potential investment than the current lot in charge. Please let this £56m statement goad him into action!

[/quote]I think the 20 million was for players and was in addition to whatever Mr Cullum offered for the shares.

[sturgeon220 0]

[quote user="Fat Prophet"]

City fans, you can do your bit too!  Give up your season tickets!  Sacrifice is never easy, or it wouldn''t be a sacrifice at all.  But now''s the time!  Seize the moment!  This is our club and we want it back!

 

[/quote]  Giving back several thousand pounds worth of season tickets would make the club less atractive to any prospactive purchaser 

[WeAreYellows49 0]

[quote user="jbghost"]

I think a few very childish and to be honest ridiculous posters on this thread really have no idea what running a business is about. I can only assume that some of the insulting anti Smith posts are from children.

Quite clearly if Mr Cullum wants to put £20 million into players he can make a gift of the money. This isn''t the case though. He wants a controlling interest of the club which happens to be worth a few million pounds weather it comes from buying out the Smiths or other directors and some of Smith''s shares. You can insult Delia as much as you want, the facts are that if Cullum is serious he has to buy 51% of the sharesAT £30 a time.

Paying back the £4 million loan which I assume is half the Turners and half the Smiths I would expect depends on whose shares he buys. If you were a shareholder being bought out you would expect any loan you had made be repaid as well. In reality I assume the Turners will stay so their loan could remain.

As already clearly posted but not taken in by others, if he wants to take control all outstanding bank loans must be repaid as you cannot expect parting shareholders to still be nominally responsible for the debt repayment. It would not be difficult to renegotiate new loans if  Cullum wantes to.

Bottom line is the £56 million is the highest price Cullum would have to pay to take control of all shares and remove all the debt from the club as well as invest £20 million into players.

The reality could be a lot less.

[/quote]

 

lol @ childish posters, ok if you say so.  But what I see are FANS who are passionate about their club and the way it''s being, and has been run into the ground by those lot who sit on the board, especially queen delia on her throne.

You remember us, fans who plough thousands of pounds of our hard earned cash into the club each year, the ones who aren''t allowed opinions, and when we air those are called childish by posters who assumes we don''t know anything, to me that''s  quite condescending of you.

[ncfcstar 287]

JBGHOST "51% needed"

Not true, 50% is all that is needed, and then you can have a shareholders agreement.

What is interesting is that by doing this the club have basically put themselves up for sale publicly. Obviously whoever buys the club will not pay £56m, but it will be interesting to see how the whole situation develops over the next few weeks.

[norfolkbroadslim 223]

[quote user="kdncfc"][quote user="CaptnCanary"]

Hang on a second here. This £56m statement from the club is simply pure spin (again). In actual fact the purchase cost would be just £16m for the shares (if he paid full price). The £20m of debt may well have to be paid off initially but it could easily be refinanced if necessary - Cullum would probably be able to get the new loan in place before having to pay the bank/directors back their funds. The other £20m for players just comes from todays newspaper article. So Cullum could actually assume full control of the club for £16m or less if the shareholders would accept less and then he would be free to arrange the financing and further investment in the team as he sees fit. If he wanted to stick with this original £20m outlay offer we would still have £4m for transfers which lets face it, most of us would have been happy with before this story broke.

I think the key thing here is to get Cullum on board and in control. Once he is involved I am sure he would inject more funds over time as his interest and ambition for the club increases. He would certainly offer far more potential investment than the current lot in charge. Please let this £56m statement goad him into action!

[/quote]I think the 20 million was for players and was in addition to whatever Mr Cullum offered for the shares.[/quote]

 

Exactly what I was going to say.  I thought the statement of £20m was to buy players, someone of Mr. Cullen''s business acumen would not think that he could have control of the club and invest £20m into the squad for a total outlay of £20m. 

[Blofield Canary 11]

I think youll find the club is valued at £36 million. 

£16 million with the shareholders

£4 million in money owed to the Turners and Smiths (£2 million a piece)

£16 million in debt secured on the clubs assets

[The Fish Seller 0]

[quote user="sturgeon220"][quote user="Worst Wizard"][quote user="sturgeon220"][quote user="Worst Wizard"]That statement says more about Delias motives than anyone on here ever has.[/quote] Pardon?[/quote]Didn''t take you long did it?!) Convert all loans to shares then increase share price from £25 to £30 instant 20% markup on all shares you hold.2)Having acquired controlling interest convert NCFC LTD to NCFC PLC Thus potential buyer has no option but to buy you out completely.3)Ensure all long term debt is repayable on change of ownership. Tags another £20mill on the price.4)Having dragged the club to the depths of the old second division, weakened the playing squad beyond recognition, selling all the good players to "balance the books" and replacing them with cheapies and freebies and loans, run up twenty million pounds of debt in the Clubs name, she then announces to the World that the purchaser has to invest £20m in the squad, Double what Delia has put into the Club in ten bloody years,  of course that £20m wont be secured against securities or shares like Delia had the priviledge to do.!!!! But if you don''t put it in you''ll be exactly the sort of nasty person Delia has been saving us from for so long.She has screwed us royally here. Messed up the team, messed up the finances and now wants to walk, head up having saved the Club, with a 20% profit on her investment and leaving the new owner holding a very ugly £20m baby created by the current Boards mismanagement of income over the last ten years.She got in cheap and wants to sell top dollar and you question me?.[/quote]   Unless you are a financial expert in which case I will bow to your expert and reasond case for the prosecution. [/quote]Dont patronise me.Clause 3) Repayment due technically yes in practice it is secured so would likely be re-negotiated in fact if PC took over it would be bad business for the lender to call it in. He''s a big player with massive collateral, a far better risk than Delia.Why are they asking £30 for shares then? She paid £25 for most of hers Nothing you could say will make me believe anything other than Delia and Michael have feathered a very comfortable nest for themselves for imminent retirement out of NCFC, and I''ve a feeling I''m far from alone in that view.

[Icecream Snow 761]

[quote user="camuldonum"]

The reality is that Mr Cullum wants to be the "controlling shareholder" in a PLC company he is going to have to buy all the other shareholders out - Stock Exchange rules.  If he just wants to invest he can put his money up and get a seat on the Board (which apparently he doesn''t want) or, like a big investment company, he can put someone from his company on that Board to look after his interests.

But if he wants CONTROL he is going to have to buy out all the other shareholders.  Then he will have total control. 

[/quote]I believe it''s that he has to have the means to buy the others out. He can''t force anyone to sell him their shares (well unless you hit the 80-90% mark)

[Buncey 1]

This is exactly what is wrong with delia, the board and the club. From every level this stinks. An apparent over-valuation of the shares. (inc. a nice little bit of small print that means that cullum has to buy 100% of the shares)The loans (it appears correct me if I''m wrong) that delia and the turners paid in good faith to the club, that will be immediately recalled...The repayments of the debt should be dealt jointly with any potential buyers. To merely state they have to repay it is brash. It doesn''t even have to be repaid, you can re-finance the debt if you must, but I very much doubt any reputable loaner will demand repayment in full immediately, unless it was written that the loans do have to be repaid in full which makes delia look even worse.On one face delia says she wants potential buyers on the other face she makes them have to jump through hoops and take an ounce of blood for good measure. I have to agree with posters on here, this does not make her seem in good light. Surely if she wanted investment in the club so badly she wouldn''t go and publically show a palm to the face of cullum. I was hoping for a headline: "Delia ready for new investment", I get this ****. I''m sorry delia, but enough is enough.

[Michael Bates 9]

if cullum is interested in norwich city and wants to help.. then why doesnt he fund the whole process by taking over at the club but keep reamined delia and the turners on board to manage the club. So then he has sorted norwich out without having to be the main main on everything and making norwich city a big part of his business life... INstead he can help and keep interests in it whilst others help manage the clu as it has been done so...

[7rew 0]

[quote user="milan marcus"]

This is a complete betrayal of the club to the fans let me explain why.

The guy wants to invest £20 million

He does not want to purchase the shares at £16 million (if they are worth £16 million?) he wants to crack a deal with the club where he gets majority control for his £20 million for instance 55% and the other shareholders reduce their stake to 45%.  Everyone is a winner here the clubs the fans and the shareholders.  The club spend the £20 million on the squad.

Repayment of the bank debt at £16 million

If the club can service the existing long term debt of £16 million so can the club with Peter Cullum.  He would just need to phone the bank (slight simplification) and use the club as collateral as it with the existing lender.

Repayment of Directors Loan £4 million

He is not here to repay the loans they will get repaid if the club is successful just as they will in the current situation.  This is really sad the loans could be guaranteed by Peter and they could be repaid as and when the club could afford it.

As I said it total betray of the fans by the club – do they really wants us or any investor to accept the club is worth £56 million?  We all know it’s not and so does Peter Cullum.

Please Delia and the board wake up smell the coffee and lets wake up to a new dawn with £20 million to spend on new players not fantasy figures.

 

[/quote]How are the shareholders winners in this deal - say the club gives him control by creating another batch of shares and selling them to him - this doesn''t suddenly double the value of the club, it halves the value of each share.  The current shareholders lose half their investment at a stroke.  How is that good for them?Even in this case he would be buy 50% of the shares for £20million - by stock exchange rules he is then forced to offer money for the rest of the shares, valuing the club at more than £20 million rather than the stated £16 million.So the £56 million is a negotiating position - take out the loans to the bank, which can be renegotiated, the director loans which will probably stay if those directors remain on the board and say that Cullum accepts taking on exactly 50% of the shares then I would expect Delia would revert to the old share price, requiring £6.66 million & the price is £26.7 million. - Cullem would have to get assurences from the lenders on the loan as well as this.This has a long way to play out - I expect that either there is another bidder or cullums offer was much lower than this  - ie give me the club for free and I''ll spend money on it.

[InLambertWeTrust! 0]

How much are the fans worth in all this? [:P]