Norwich City shares

[realale88 0]

Hi all

My Grandad passed away 2 years ago and my Nan found a share certificate for NCFC saying he brought 4 fully paid shares of £1 each back in October 2002. We think he paid £100 for these.

Does anyone know what we can do with these? My Nan may sell them or transfer them to her great grandson for the future. There is no contact info on the certificate.

Thanks

[shefcanary 2,955]

The Club sold some last year at a price of £100 each, so the 4 of them are now worth £400. That''s a healthy profit already. You could contact a local stockbroker to see if there is a ready market in them who could administer the sale (but it will cost) and perhaps get some more for you (although now may not be the best time to sell!). I''m sure the club''s finance office could also give some advice. That said not sure they''ll ever be worth more than they are now. I''d keep them in the family if I were you.

[nutty nigel 7,902]

I''d keep them too. You''ll do well to find somebody who will pay that anyway. I always think that they were probably originally bought to support the club and not as an investment. If I remember rightly that issue was to help combat the ITV Digital fiasco but Sheff prob knows more than me. Whatever happens your family will keep a stake in the club. Another thing you might check, or maybe Sheff knows, I think you mabe have to transfer them into another family members name.

 

 

[shefcanary 2,955]

Nutty, it was to raise funds to replace the ITV hole as well as the final push in 2003 for promotion. The share transfer indeed has to be officially recognised - if grandad died without a will this may be a little convoluted although I would expect nana inherited the shares if there was no will, so they will now be hers to transfer.

[Mike Reynolds Trust Secretary 0]

There is no official market in NCFC Shares however Norwich City Supporters Trust website offers a facility whereby people wishing to sell shares can place their e-mail address and anyone seeking to purchase some shares can contact them. The Trust cannot oversee the sale but it has been successful in facilitating sales.

www.inthehandsoffans.co.uk

Of course the Trust is always willing to accept donations of shares as we increase a shareholding on behalf of all fans and we do organise share transfers in these circumstances. You can contact me via the website.

[Salopian 1]

I''m not sure if there is a market in the shares, or whether the legal status of the shares has changed recently, but a few years ago the club''s shares  had no quotation, and any transfer of ownership had to be via the club secretary. It may be that this is no longer the case, but an enquiry to the secretary would give the information you need.

[Tumbleweed 106]

You should write to the Company Secretary. NCFC shares are not publicly traded as it is not a listed company. If you want to sell there is normally a process that you need to go through, set out in the company''s constitutional documents. You''ll need to know which class of share they are and find out the rights which go with them from those documents. There may be a compulsory process should the shareholder pass away. The company''s secretary will know what you need to do. Around that time there was an issue of B Preference Shares I seem to recall which don''t give voting rights but allow you to attend the AGM.

[T 191]

Unless they are preference shares they are worthless unless you can find someone mug enough to take them off your hands I''m afraid as they will never generate any income for the shareholder as the club will never generate profit to pay ordinary dividends. The 100 quid price for new shares is just a donation ot the club.  I have some ordinary shares myself and it was always clear they were just a donation ot the club when we were in league one and that I could never expect aynything back.

[PurpleCanary 6,386]

[quote user="shefcanary"]The Club sold some last year at a price of £100 each, so the 4 of them are now worth £400. That''s a healthy profit already. You could contact a local stockbroker to see if there is a ready market in them who could administer the sale (but it will cost) and perhaps get some more for you (although now may not be the best time to sell!). I''m sure the club''s finance office could also give some advice. That said not sure they''ll ever be worth more than they are now. I''d keep them in the family if I were you.[/quote]

 

I think the £100 price is pretty theoretical. I can''t imagine anyone privately paying that, or anything like it. Essentially most people hold NCFC shares for sentimental reasons.That said, in the event of a takeover (and sooner or later the company will change hands) the shares could end up being reasonably valuable. If, for example, someone takes over the company by buying all or most of Smith and Jones'' stake then they have to offer to buy everyone else''s shares. They have no choice in that. And, unless the Takeover Code has changed recently, they have to offer the price they''ve paid Smith and Jones. So if they pay them £10 a share they have to offer you £10. But if they''ve paid S&J £50 they have to offer you £50. Beyond that it is not entirely inconceivable that a new owner could start paying a dividend on these ordinary shares, or even think about floating (totally or partially) the company on one of the stock markets. That being the other main way (as opposed to debt) of raising money.Either way, like shef, I would hold on to them, or gift them/sell for a nominal sum to the Norwich City Supporters'' Trust.

[lappinitup 629]

[quote user="Mike Reynolds Trust Secretary"]f course the Trust is always willing to accept donations of shares as we increase a shareholding on behalf of all fans[/quote]All very commendable and worthwhile.....in theory. But how would it work in practice? We know the Trust''s ultimate ambition is to have a fan''s representative on the board, meaning they would have a voice and an influence in decision making.But, how would it work if you actually had a fans representative on the board NOW as the club is in somewhat of a crisis regarding the manager?  Would the trust be urging the board to sack or retain Chris Hughton and how would this be decided? I assume you would take a vote amongst your membership but could you be sure this would be reflective of the views of ALL the fans?Whilst I think the fans having a representative on the board is a lovely idea, I''m not so sure how it would work in reality.

[TIL 1010 5,246]

It is never going to happen Lapp as The Trust have taken over a decade to muster a mere 2,000 odd shares.

[Les 0]

well, I''ve got six of these shares, willing to let them go for a measly £90 each if anyone''s keen to expand their portfolio.

[Les 0]

£80 a piece now, any takers?

[Juggy 0]

How many shares are in issue?

I saw somewhere once that £100 a share would value the club at something like several hundred million pounds.

Clearly the club is not worth several hundred million pounds, because you could buy 100% of Newcastle United for that and pay back every penny of their debt to Mike Ashley in the process.

I''d be interested to know how many shares are in issue. From that we could work out a true value.

But they weren''t ever intended to be a sound financial investment, so if you expect £90 a share for something which cost £25 then don''t be so silly. They are a novelty in reality.

Their are still unissued shares held at the club so if anybody wanted any they could quite easily buy them direct from the club for £100 and the club will benefit from the transaction. You haven''t made it clear whether you will be covering the associated costs of the transaction either, or whether the buyer will, or whether you will be splitting the costs, or indeed what those costs are.

There is a supporters association which buys shares in the club, you could try and get in contact with them - but again, they would probably only be interested in a bargain, as supposedly as supporters of the club they would prefer money to go to the club.

[nutty nigel 7,902]

I believe the official value is £100. However in truth the shares are only worth what two parties agree on. So if you want to buy my shares you could offer me £5. And I could take £5. But I won''t sell them because I shall insure they are passed on to someone who loves the club as much as me. The sentimental value and the chance to mix with other fans at the AGM are the only real value they hold for me.

 

 

[Juggy 0]

"However in truth the shares are only worth what two parties agree on"

Yes that is true, but if somebody was planning on buying large quantities (as an investment), they would probably be willing to pay per share:

What they think the club is worth.

/

How many shares are in issue

That''s why I''d like to know how many shares in total are in existence.

If it were 1 million shares then £90 a share would value the club at £90 million.

I heard somewhere that at £100 a share the club would be valued at several hundred million. If that were the case then I''d probably value the shares at more like £10, £15, £20 a share, if somebody was looking to acquire a serious stake.

[PurpleCanary 6,386]

[quote user="Le Juge"]How many shares are in issue?

I saw somewhere once that £100 a share would value the club at something like several hundred million pounds.

Clearly the club is not worth several hundred million pounds, because you could buy 100% of Newcastle United for that and pay back every penny of their debt to Mike Ashley in the process.

I''d be interested to know how many shares are in issue. From that we could work out a true value.

But they weren''t ever intended to be a sound financial investment, so if you expect £90 a share for something which cost £25 then don''t be so silly. They are a novelty in reality.

Their are still unissued shares held at the club so if anybody wanted any they could quite easily buy them direct from the club for £100 and the club will benefit from the transaction. You haven''t made it clear whether you will be covering the associated costs of the transaction either, or whether the buyer will, or whether you will be splitting the costs, or indeed what those costs are.

There is a supporters association which buys shares in the club, you could try and get in contact with them - but again, they would probably only be interested in a bargain, as supposedly as supporters of the club they would prefer money to go to the club.[/quote]

 

Based on the latest accounts there are 617,000 ordinary shares (the ones that control the company) issued and paid for. If £100 is the official or semi-official price then that values the company/club at  just under £62m.The company can issue new shares - nearly three years ago it created 80,000 for Foulger to buy - but for now it seems unlikely it will do so. McNally recently told the Norwich City Supporters'' Trust, which wanted to buy some more, that they were stopping  new issues/sales. The reason given by McNally was that they didn''t want further to dilute the holdings of the owners. The Foulger deal cut Smith and Jones'' majority holding to around 53 per cent, and it can''t really be allowed to reduce much further than that. That said the kind of small purchase the Trust would have in mind would hardly have had much of an effect on that majority figure.