My reading is….
He’s subscribing for £10m of prefs with a 7% dividend with a 7 year term. Given he’s coming on to the board, he’s almost certainly buying out Foulger (although not confirmed, I think we can take that as a given).
In the event of a change of ownership, (e.g. Delia and MWJ sell up, or gift their shares, to someone else), the preference shares can be redeemed at MAs election, but if he chooses not to, he can instead convert them (and forfeit any accrued but unpaid dividends) into ordinary shares (10% of the company), or just leave them in existence.
Based on the information available, there’s nothing to suggest there is a plan for MA to become the majority owner. If Delia and MWJ hand their shares to Tom, MA has the option to get the cash invested on the prefs back, or keep them, or convert them into ords. To me options are about giving MA flexibility in relation to the prefs depending on things that could happen that are outside his control.
That said, my best guess, as we thought all along, this is an initial investment and opportunity for both parties to work together with a view to a bigger investment in the future.
Posted By: SimonOTBC on August 22nd 2022 at 15:15:26
Message Thread
- Have got the letter - load of gobbledegook so need a lawyer or accountant to verify but... (NCFC) - Ruttles, Aug 22, 13:55:35
- FUCKING BANG! ALARM NOISE! MASSIVE ALARM NOISES! TWAT! FIREWORK EDXPLOSION! (NCFC) - tehwatch, Aug 22, 15:46:15
- My reading is…. (NCFC) - SimonOTBC, Aug 22, 15:15:26
- would be staggered if there wasn't a plan for him to acquire their shares (NCFC) - CWC, Aug 22, 15:57:50
- I would expect there is a heads of agreement type of thing about what happens in the futur (NCFC) - SimonOTBC, Aug 22, 17:05:59
- That's my non-expert eye on it as well (NCFC) - camcan, Aug 22, 16:46:54
- would be staggered if there wasn't a plan for him to acquire their shares (NCFC) - CWC, Aug 22, 15:57:50
- If your scenarios are correct, then SexyB once again got that right (NCFC) - Legacy Fan, Aug 22, 14:46:52
- Does any of it involve Henry Winkler and a dodgy jukebox at half time (NCFC) - inutero, Aug 22, 14:14:55
- those untraceables; bad news for the 2001 squad! (n/m) (NCFC) - Henclrikus, Aug 22, 14:10:05
- I’m sure there will be plenty of information out of the club in due course (NCFC) - SimonOTBC, Aug 22, 14:02:37
- Would surely be helpful sooner rather than later before the meeting though ? (n/m) (NCFC) - loz, Aug 22, 15:08:50
- Why? (NCFC) - SimonOTBC, Aug 22, 15:19:02
- #2 is the sort of thinking that led us to BK8. (n/m) (NCFC) - CWC, Aug 22, 15:50:10
- Yea guess so planning to attend in any event (n/m) (NCFC) - loz, Aug 22, 15:27:58
- Why? (NCFC) - SimonOTBC, Aug 22, 15:19:02
- Would surely be helpful sooner rather than later before the meeting though ? (n/m) (NCFC) - loz, Aug 22, 15:08:50
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