British entrepreneur Mike Ashley on Wednesday launched a takeover bid for Newcastle United worth 133 million pounds after netting almost half of the English Premiership club.
LONDON: British entrepreneur Mike Ashley on Wednesday launched a takeover bid for Newcastle United worth 133 million pounds after netting almost half of the English Premiership club.
"I am delighted to have this opportunity to invest in Newcastle United," said Ashley, who struck a deal to buy 41.6 percent of the club that recently appointed former Bolton boss Sam Allardyce as its new manager.
Ashley's takeover vehicle, St James Holdings Limited, has acquired more than 55 million shares, each priced at 100 pence, from Newcastle life president Sir John Hall and his family interests, according to a statement.
The size of Ashley's stake means he must make a bid, worth also 100 pence per share, for the remaining stock, of which almost 30 percent is owned by Newcastle chairman Freddy Shepherd.
"The board of Newcastle United will meet to consider the offer shortly," it said in a separate statement.
"Newcastle United shareholders are urged to take no further action at this stage."
The 100 pence per share takeover offer was at a 19 percent premium to the 84 pence closing price of Newcastle shares on May 22. Newcastle shares ended at 96 pence on Wednesday.
A takeover of Newcastle would be a massive boost for the club, which despite regularly playing in front of 50,000 fans at its St James' Park stadium in northeast England, has not won a major trophy since 1969.
Glen Roeder was sacked as manager of the Magpies earlier this month after a disappointing season in which Newcastle finished 13th in the Premiership.
But the team that plays in black and white was always likely to struggle after losing England striker Michael Owen for all but the last few games of the campaign after he injured himself at the 2006 World Cup.
Newcastle is one of a number of Premiership clubs being sought by tycoons, mainly from abroad.
Earlier this year US magnates George Gillett and Tom Hicks bought Liverpool for 438 million pounds. Liverpool was the third Premiership club to fall into US hands during the past two years after Manchester United was bought by the Glazer family and Aston Villa by tycoon Randy Lerner.
But Peter Hill-Wood, chairman of Arsenal, is adamant that the London club will not end up the same way after American billionaire Stan Kroenke recently bought a large stake in the Gunners.
Premiership clubs are being bought at a time when income of each of the league's 20 teams is set to rise by an average of more than ten million pounds per year following a record-busting overseas television rights deal.
Booming demand from Asia and the Middle East has allowed the league to tie up contracts worth 625 million pounds for broadcasting rights for the next three years, boosting overall media income to 2.725 billion pounds, 60 percent above current levels.
Ahead of the 2007-08 season, former Thailand prime minister Thaksin Shinawatra has emerged as the frontrunner in an anticipated takeover bid for Manchester City.
In late 2006, an Icelandic consortium secured London side West Ham for 85 million pounds, a few years after this season's FA Cup winners Chelsea was bought by Russian billionaire Roman Abramovich.
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