Newcastle United on Thursday backed a takeover from British entrepreneur Mike Ashley, which valued the English Premiership club at £134-million pounds.
The board recommendation came after Ashley’s takeover vehicle, St James Holdings Limited (SJHL), lifted its bid from 100 pence to 101 pence per share for the club, which recently appointed former Bolton boss Sam Allardyce as manager.
”SJHL and Newcastle United are pleased to announce that they have agreed the terms of a recommended cash offer by SJHL,” the pair said in a statement to the London Stock Exchange, adding that chairperson Freddy Shepherd has agreed to sell his shares to Ashley.
”The board of Newcastle United has unanimously recommended that Newcastle United shareholders accept the offer.”
The takeover is a massive boost for the club, which despite regularly playing in front of 50 000 fans at its St James’ Park stadium in north-east England, has not won a major trophy since 1969.
Ashley is the founder and majority shareholder of the retailer Sports Direct International.
”The offer from SJHL is at a level which fully reflects both the performance of Newcastle and its prospects and ambitions for the future,” Freddy Shepherd added in the statement.
”The board believes that SJHL and Mike Ashley will be excellent custodians of Newcastle United’s heritage and will provide the best possible opportunity for the club to flourish in the future, to the benefit of the company and its fans.” — Sapa-AFP