St James Holdings
Encyclopedia
St James Holdings Limited is a company set up by tycoon Mike Ashley
, specifically to acquire shares of Newcastle United Football Club. The company name is a reference to St James' Park
, the stadium of Newcastle United.
On 23 May 2007 English businessman Mike Ashley bought Sir John Hall
's stake in Newcastle United F.C of 41.6% for £55,342,223, valuing the club at £132,810,710.35, he then launched a formal takeover bid at 100p per share. This was a 14% rise on the price at closing on the London Stock Exchange the day before. Chairman Freddy Shepherd, who was in hospital at the time of the bid suffering from a punctured lung, said that he planned to fight the takeover and not allow Mike Ashley to get his hands on his 29.8%.
Under the terms of UK takeover law, having purchased more than 30% of a listed company, he was obliged to make an offer to buy the remaining shares at the same or a greater price.
31 May
On 31 May it was reported that the Newcastle board were considering Ashley's offer. It is widely believed that Mike Ashley then owned around a 54% stake in the club meaning that Freddy Shepherd's 29.8% was then useless and he could have been removed from his position as chairman by the new majority shareholders.
7 June
On the 7 June 2007 Freddy Shepherd
and Shepherd Offshore Services Ltd. agreed to sell their stake in Newcastle United and released a statement urging other shareholders to do the same. It was announced that Shepherd would remain in the role of chairman.
15 June
Confirmation came on the 15 June that Mike Ashley and St. James' Holdings had acquired slightly over 77% of the club. This means that Mike Ashley could delist the company from the stock exchange, with the date of 18 July being mentioned in the release.
26 June
On 26 June 2007, Ashley gained the 90% of shares needed to compulsorily acquire the final 10% of shares. On the same day, directors Bruce Shepherd, Allison Antonopoulos, Tim Revill and Douglas Hall formally resigned from the board and both Chris Mort
and Steve Hayward
were appointed.
18 July
On 18 July 2007, the shares of Newcastle United PLC were delisted from the London Stock Exchange
.
(who had been appointed in January) left the club. The European style of management introduced by the Ashley regime was cited as the reason for his departure. The fans of the club began to protest outside St James' Park and the players' performance suffered. This pressure led to Mike Ashley releasing a statement and putting the club up for sale. The London-based investment bank Seymour Pierce was appointed to handle the sale of the club.
On 28 December the sale was called off.
On 27 October the sale was again called off. At the same time Ashley decided to sell the naming rights to St. James' Park - namesake of the holding company. This again angered fans. In April 2010 it was confirmed that the club was to return to the Premier League; this is likely to increase the value of the club once again.
Mike Ashley (businessman)
Michael James Wallace "Mike" Ashley is an English millionaire retail entrepreneur in the sporting goods market...
, specifically to acquire shares of Newcastle United Football Club. The company name is a reference to St James' Park
St James' Park
St James' Park, known for sponsorship reasons as the Sports Direct Arena, is an all-seater stadium in Newcastle upon Tyne, England. It is the home of Newcastle United Football Club and is the sixth largest football stadium in the United Kingdom with a capacity of between 52,387 and 52,409.St James'...
, the stadium of Newcastle United.
2007 – Newcastle United takeover bid
23 MayOn 23 May 2007 English businessman Mike Ashley bought Sir John Hall
John Hall (businessman)
Sir John Hall is a property developer in North East England. He is also life president and former chairman of Newcastle United.-Biography:...
's stake in Newcastle United F.C of 41.6% for £55,342,223, valuing the club at £132,810,710.35, he then launched a formal takeover bid at 100p per share. This was a 14% rise on the price at closing on the London Stock Exchange the day before. Chairman Freddy Shepherd, who was in hospital at the time of the bid suffering from a punctured lung, said that he planned to fight the takeover and not allow Mike Ashley to get his hands on his 29.8%.
Under the terms of UK takeover law, having purchased more than 30% of a listed company, he was obliged to make an offer to buy the remaining shares at the same or a greater price.
31 May
On 31 May it was reported that the Newcastle board were considering Ashley's offer. It is widely believed that Mike Ashley then owned around a 54% stake in the club meaning that Freddy Shepherd's 29.8% was then useless and he could have been removed from his position as chairman by the new majority shareholders.
7 June
On the 7 June 2007 Freddy Shepherd
Freddy Shepherd
Freddy Shepherd , is an English businessman and the former chairman of Newcastle United football club.During his time at Newcastle, both as an active assistant to and later replacement of Sir John Hall as chairman for ten years, Shepherd proved an often outspoken and controversial figure, at times...
and Shepherd Offshore Services Ltd. agreed to sell their stake in Newcastle United and released a statement urging other shareholders to do the same. It was announced that Shepherd would remain in the role of chairman.
15 June
Confirmation came on the 15 June that Mike Ashley and St. James' Holdings had acquired slightly over 77% of the club. This means that Mike Ashley could delist the company from the stock exchange, with the date of 18 July being mentioned in the release.
26 June
On 26 June 2007, Ashley gained the 90% of shares needed to compulsorily acquire the final 10% of shares. On the same day, directors Bruce Shepherd, Allison Antonopoulos, Tim Revill and Douglas Hall formally resigned from the board and both Chris Mort
Chris Mort
Christopher "Chris" Mort is an English lawyer and former chairman of Newcastle United Football Club.-Biography:Mort is a lawyer for Freshfields Bruckhaus Deringer, where he is co-head of the leisure sector group and oversees relationships with companies in the gaming, holidays, hotels, pubs and...
and Steve Hayward
Steve Hayward
Steven Lee Hayward is an English footballer who played as a central midfielder.Hayward began his career with Derby County and made his League debut in 1990, but found first-team opportunities limited...
were appointed.
18 July
On 18 July 2007, the shares of Newcastle United PLC were delisted from the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
.
2008 – Possible sale
In September 2008 the club manager Kevin KeeganKevin Keegan
Joseph Kevin Keegan, OBE is a former international footballer and former manager of the England national football team and several English clubs, most notably Newcastle United....
(who had been appointed in January) left the club. The European style of management introduced by the Ashley regime was cited as the reason for his departure. The fans of the club began to protest outside St James' Park and the players' performance suffered. This pressure led to Mike Ashley releasing a statement and putting the club up for sale. The London-based investment bank Seymour Pierce was appointed to handle the sale of the club.
On 28 December the sale was called off.
2009/10 – Relegation and Promotion
After Newcastle United were relegated from the Premier League to the Coca-Cola Championship on 24 May 2009, it is likely that the club will be sold. According to media reports on 31 May 2009, Ashley is attempting to sell the club again. The lowered asking price due to the relegation was £100 million.On 27 October the sale was again called off. At the same time Ashley decided to sell the naming rights to St. James' Park - namesake of the holding company. This again angered fans. In April 2010 it was confirmed that the club was to return to the Premier League; this is likely to increase the value of the club once again.