Newcastle United is a takeover target |
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Published
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Tue, 26 Jul 2005 12:35
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LONDON: Newcastle United Plc appears to be a takeover target. An undisclosed buyer has approached the club's president Sir John Hall with a 20 million pound offer to sell a 28.5 per cent stake his company, Wynyard, owns in the club.
Sir John, the club's largest shareholder and its life president, is credited with having revived the club in the 199s along with Kevin Keegan. It is not clear whether he would offload the stake.
There are two probable buyers, according to sources in the know. One is Ray Ranson, formerly of Toon, who has the backing of several wealthy and influential businessmen and has his own funds to invest. The other is a Malaysian conglomerate. It is also rumoured that the club's chairman Freddy Shepherd himself is interested. He owns 26.7 per cent in the club through his company, Shepherd Offshore.
The club last one a trophy back in 1969.
Newcastle said in a press statement that Hall's Wynyard (Guernsey) Ltd., a trust, "has received an approach to acquire its shareholding, which may or may not lead to the disposal of its stake. "
Hall, who bought the stake for 3 million pounds in 1990s, had ensured the club's rise to the Premier League level. He stepped down as chairman in December 1997. The club is considered 1th in Europe in terms of revenue. Its first-half earnings recorded a threefold increase, basically from sale of players, including Jonathan Woodgate, who went to Real Madrid. Its half-yearly net income for the period ending January 31 was 6.38 million pounds, while revenue rose to 49.5 million pounds.
Newcastle has been in the news as a takeover target after U.S. billionaire Malcolm Glazer bought Manchester United for 790 million pounds.
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