New Shares

[Jonncfc 28]

Can someone who understands company law explain what could and couldn''t be done with a new share issue?  For instance, let''s say there was a potential new invester who, for arguments sake, wanted to invest £20 million to strengthen the team.  Let''s also say that he/she wished to put that money into the Club by buying a new share issue whereby the Club issued sufficient new shares to give that invester just over a 50% holding (i.e. having "control").  If he/she only bought these new shares and all current shareholders kept their existing shares would there still be a requirement for him/her to offer to buy all other shares and to pay off debts etc?   In other words, would a new share issue totally negate the Club''s apparent position that any new invester would have to find £56 million?

[ricardo 7,347]

My understanding is that there are only about 5% of the shares that are so far unallocated.

 

[canary cherub 1]

It depends whether there is scope to issue more shares, which as I understand it is related to the asset value of the club.

IF that''s what Peter Cullum wants to do - gain control by buying new shares which puts new money into the club (and we don''t know for sure) - no doubt he''ll have done his homework and knows that enough new shares could be issued to give him a majority stake.

It would have to be voted through at an EGM.  That could be tasty . . .

 

[Bobzilla 133]

Theoretically, it could be done. However, it would need the buy in of pretty much all the shares. Certainly, it would need Delia and MWJ to buy in. I suspect that this is what Cullum''s preferred method would be. Not least of which because the stamp duty on a large purchase of shares could be quite large in itself, whereas an issue of shares is free of stamp duty.

[GMF 736]

[quote user="Fat Prophet"]

It depends whether there is scope to issue more shares, which as I understand it is related to the asset value of the club.

IF that''s what Peter Cullum wants to do - gain control by buying new shares which puts new money into the club (and we don''t know for sure) - no doubt he''ll have done his homework and knows that enough new shares could be issued to give him a majority stake.

It would have to be voted through at an EGM.  That could be tasty . . .

 

[/quote]

There''s always scope for the Club to issue more shares and this can be done by way of an Ordinary Resolution being put to shareholders at either the AGM or an EGM requesting an increase in the Authorised Share Capital in the Company. This was actually done at the last AGM, however, the proposal was to create only an additional 33,333 Ordinary Shares of £1 each. Given the number of shares already fully paid up (purchased by existing shareholders) this limits the opportunity for anyone to purchase new shares.

[Mr.Carrow 376]

[quote user="GazzaTCC"][quote user="Fat Prophet"]

It depends whether there is scope to issue more shares, which as I understand it is related to the asset value of the club.

IF that''s what Peter Cullum wants to do - gain control by buying new shares which puts new money into the club (and we don''t know for sure) - no doubt he''ll have done his homework and knows that enough new shares could be issued to give him a majority stake.

It would have to be voted through at an EGM.  That could be tasty . . .

 

[/quote]

There''s always scope for the Club to issue more shares and this can be done by way of an Ordinary Resolution being put to shareholders at either the AGM or an EGM requesting an increase in the Authorised Share Capital in the Company. This was actually done at the last AGM, however, the proposal was to create only an additional 33,333 Ordinary Shares of £1 each. Given the number of shares already fully paid up (purchased by existing shareholders) this limits the opportunity for anyone to purchase new shares.

[/quote]

So is it your understanding that the club could issue £20m worth of new shares to Cullum should it be given the go ahead at an EGM GazzaTCC?  I`ve invested in several companies who have had multiple rights issues to fund R and D, or exploration in the case of oil/gas companies, and big investors (usually funds or venture capital groups) always seem to get the first bite of the cherry.  I`ve never been sure as to whether there is a limit to how many shares they can issue though.

[GMF 736]

I wouldn''t claim to be an expert on Company law Mr Carrow, but it is my understanding that the Club can put forward a resolution at an AGM, or EGM, to increase the Authorised Share Capital in the Company. The shareholders are then free to vote in favour or against the resolution. If passed, it is then open to anyone to buy the shares and thereby inject new captial into the Club.

[Carrow89 0]

"The shareholders are then free to vote in favour or against the resolution."Therein lies the detail. Delia and hubby''s voting majority will decide.That''s why Cullum wants overall control.Again I ask why not simply make an offer ?Such an obvious solution backed with guarantees for the future would put D&M under enormous pressure.That he hasn''t done so speaks volumes.It should also shut up the dimwitted herberts who keep bleating about what the ''board'' should do.D&M hold the majority vote. Why won''t Cullum challenge them ?What has he to hide ?

[Ralph Wrong 0]

Do you remember when we were young and you got that Tom Bull prining set for Christmas Ralph? Remember how you neatly cut out all those little rubber letters then spent hours assembling them into the frame then you stamped rude words over all the walls in the house ''til the inkpad ran dry?My how we laughed......That''s you now that is Ralph, you get a short phrase and stamp it all over the messageboard. Binners

                Binners                                                                 Binners

                                     Binners                                                                                 Hiding                       

IDIOTS!                                                            Binners!

Remember it now Ralph?

[Carrow89 0]

If the caps fits.................. widdle

[Citizen Journalist Foghorn 0]

[quote user="Ralph Wright"]If the caps fits.................. widdle[/quote]The clubs price tag is 56 million so I think we are stuck with her until the end...

[Socer Estus Sonitus 0]

but £56 Million is not realistic

[Bobert 0]

Oh course it''s realistic to someone who has £1.7 billion and wants to own the Club.Personally Peter Cullum is not going to get my shares until he obtains the 90% which forces me to sell.

I am frankly quite happy about being in the Championship and watching my team win matches. The loose/loose last time we were in the Premiership was very boring and I do not see the position changing if NCFC are promoted with a £20 million warchest.

I have said it before (but did not seem to be understood) the best thing that could happen for English Football and for Norwich City is for the Championship to be upgraded to be equal to the Premiership in the same way that American Football and American Baseball has two leagues of equal standing with a playoff at the end of the season between the two winners.

It needs an entrepreneur to SELL the Chamionship to the TV companies and surely that cannot be too difficult.

[Mr.Carrow 376]

[quote user="Ralph Wright"]"The shareholders are then free to vote in favour or against the resolution."

Therein lies the detail. Delia and hubby''s voting majority will decide.

That''s why Cullum wants overall control.

Again I ask why not simply make an offer ?

Such an obvious solution backed with guarantees for the future would put D&M under enormous pressure.

That he hasn''t done so speaks volumes.

It should also shut up the dimwitted herberts who keep bleating about what the ''board'' should do.

D&M hold the majority vote.

Why won''t Cullum challenge them ?

What has he to hide ?
[/quote]

Ralph, with the new shares option it is about the current board compromising and putting a resolution to the shareholders to vote on, thereby allowing Cullum to inject his £20m into the squad and become the majority shareholder.  Reading between the lines i think this is what he has offered ("i don`t want to buy Delias` shares" but "i want a majority stake") and the ball is in the boards` court on whether to accept it and put it to shareholders or enter into further talks to iron out problems they may have. 

[Socer Estus Sonitus 0]

No it''s not at all realistic. Also if an investor had that much to spend he could get a much better return elsewhere. £56 million for a team which,to be realistic, are relegation material is not a viable investment.

[First Wizard 0]

[quote user="Bobert"]

Oh course it''s realistic to someone who has £1.7 billion and wants to own the Club.Personally Peter Cullum is not going to get my shares until he obtains the 90% which forces me to sell.

I am frankly quite happy about being in the Championship and watching my team win matches. The loose/loose last time we were in the Premiership was very boring and I do not see the position changing if NCFC are promoted with a £20 million warchest.

I have said it before (but did not seem to be understood) the best thing that could happen for English Football and for Norwich City is for the Championship to be upgraded to be equal to the Premiership in the same way that American Football and American Baseball has two leagues of equal standing with a playoff at the end of the season between the two winners.

It needs an entrepreneur to SELL the Chamionship to the TV companies and surely that cannot be too difficult.

[/quote]

If you seriously believe the utter crap that you''ve just written Bobert, and I''m not sure you do, then we might as well pack it all in.

If beating Man U and the 4-4 draw with Boro is boring, then I''d love to have some more of it please.

[Unhinged Canary 375]

[quote user="1st Wizard"][quote user="Bobert"]

Oh course it''s realistic to someone who has £1.7 billion and wants to own the Club.Personally Peter Cullum is not going to get my shares until he obtains the 90% which forces me to sell.

I am frankly quite happy about being in the Championship and watching my team win matches. The loose/loose last time we were in the Premiership was very boring and I do not see the position changing if NCFC are promoted with a £20 million warchest.

I have said it before (but did not seem to be understood) the best thing that could happen for English Football and for Norwich City is for the Championship to be upgraded to be equal to the Premiership in the same way that American Football and American Baseball has two leagues of equal standing with a playoff at the end of the season between the two winners.

It needs an entrepreneur to SELL the Chamionship to the TV companies and surely that cannot be too difficult.

[/quote]

If you seriously believe the utter crap that you''ve just written Bobert, and I''m not sure you do, then we might as well pack it all in.

If beating Man U and the 4-4 draw with Boro is boring, then I''d love to have some more of it please.

[/quote]It''s obviously going to happen in everyones lifetime at least once! I''m in full agreement with Wiz on this one! Bobert, you sir are a moron! Comparing the Premiership and the Championship to the NFL & NBA?? Give me a break! That''s what makes our football league great, in the fact that it''s nothing like the leagues watched by fat, dumb Americans![:O]

[Citizen Journalist Foghorn 0]

[quote user="Bobert"]

Oh course it''s realistic to someone who has £1.7 billion and wants to own the Club.Personally Peter Cullum is not going to get my shares until he obtains the 90% which forces me to sell.

I am frankly quite happy about being in the Championship and watching my team win matches. The loose/loose last time we were in the Premiership was very boring and I do not see the position changing if NCFC are promoted with a £20 million warchest.

I have said it before (but did not seem to be understood) the best thing that could happen for English Football and for Norwich City is for the Championship to be upgraded to be equal to the Premiership in the same way that American Football and American Baseball has two leagues of equal standing with a playoff at the end of the season between the two winners.

It needs an entrepreneur to SELL the Chamionship to the TV companies and surely that cannot be too difficult.

[/quote]what a load of piffle from this thicko.  As I remember we didn''t win too many games in the championship last season.

[spudgfsh 0]

[quote user="The Anonymous One"]

Can someone who understands company law explain what could and couldn''t be done with a new share issue?  For instance, let''s say there was a potential new invester who, for arguments sake, wanted to invest £20 million to strengthen the team.  Let''s also say that he/she wished to put that money into the Club by buying a new share issue whereby the Club issued sufficient new shares to give that invester just over a 50% holding (i.e. having "control").  If he/she only bought these new shares and all current shareholders kept their existing shares would there still be a requirement for him/her to offer to buy all other shares and to pay off debts etc?   In other words, would a new share issue totally negate the Club''s apparent position that any new invester would have to find £56 million?

[/quote]

As has been said before and will be said again the city of london rules that apply to public companies will still apply however someone gains of 30% of the club.  This will then trigger the boards other bundles of cash that would need to be found.