Investment firm targets Premiership club Newcastle United |
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Published
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Mon, 21 Aug 2006 13:00
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LONDON: British soccer club Newcastle United Plc. is being targeted by island of Jersey-based investment firm Belgravia Group. The firm confirmed earlier news reports about the acquisition and that initial discussions had already taken place.
Belgravia Group's plan comes in the wake of U.S. billionaire Randy Lerner agreeing to a 62.6-million-pound takeover of Newcastle's Premier League rival Aston Villa.
The firm said in a statement that it is examining the potential opportunity of acquiring Newcastle, "which may or may not lead to an offer for the company being made by Belgravia."
A spokesperson for the firm said the negotiations are at a very early stage. The group, headed by Duncan Hickman, has some 1.1 billion pounds in assets.
Newcastle United declined to comment on the reports.
In 2005 England's biggest football club, Manchester United, was acquired by Malcolm Glazer, owner of Tampa Bay Buccaneers for 790 million pounds.
Nearly 28.8 per cent of Newcastle United are owned by Sir John Hall, former chairman of the club, while his son Douglas has 12 per cent. Nearly 28 per cent is held by Freddy Shepherd, who is the current chairman and has been resisting approaches for sale of the stake. Representatives of Belgravia Group have already met the Halls.
Newcastle's shares shot up 11.5 per cent to 69.6 pence a share, valuing the company at around 96 million pounds.
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