Farhad Moshiri

[bring the ghost on]

Sure, I hear what you are saying but I have it on pretty good authority that there are milestones attached to the options.

What type of milestones are we talking about? I mean, there could be certain standard milestones such as dates for exercise, but I have serious doubts that Moshiri would allow a takeover to be hindered by any milestones which encroach on his freedom to run the club as he sees fit (e.g. planning permission for a site).

Re the Prudential loan, it was me who brought the change of control clause to the public attention. Further to the Pru loan, further evidence of it having been repaid is the land acquisition as it is very unlikely the club could/would have acquired the land with the original secured loan still in place.

Yeah I've seen you post that previously. Re the purchase of land though, if the purchase was made through lending with subordinate security, Prudential might not necessarily object (i.e. provided their security has priority). It is common to see several mortgages/debentures granted by one company, and Moshiri will have more sway with the banks than BK could. I do hope you're right though.

 

[bring the ghost on]

Sure, I hear what you are saying but I have it on pretty good authority that there are milestones attached to the options.

Another point is that when the option is exercised, Moshiri will have to pay circa. £40m for the remaining 25% of the shares. At present, he more or less has control of the club and isn't seeking to benefit from any short term dividends, so really there is little tangible benefit in him spending the £40m in a hurry, his view might simply be to focus on the development of the club and increase his shareholding at a more appropriate time (or perhaps use the option in conjunction with external investors).

 

[The Esk]

What type of milestones are we talking about? I mean, there could be certain standard milestones such as dates for exercise, but I have serious doubts that Moshiri would allow a takeover to be hindered by any milestones which encroach on his freedom to run the club as he sees fit (e.g. planning permission for a site).

I've not seen any documentation (and nor should I) but have been told it relates to provision of working capital (one assumes for debt repayment, transfer funds) and 'progress' on the stadium (although that progress has not been defined to me).

I am aware that considerable work on the stadium was done prior to his acquiring his shares, so perhaps, negotiations not withstanding, it was not such a leap in the dark.

 

[bring the ghost on]

I am aware that considerable work on the stadium was done prior to his acquiring his shares, so perhaps, negotiations not withstanding, it was not such a leap in the dark.

Do you mean that Moshiri is continuing with existing plans?

 

[The Esk]

Do you mean that Moshiri is continuing with existing plans?

No, part of his DD process was establishing the likely location, cost and potential pitfalls of a new stadium in more than one location including the dock site.

 

[MartyMcFly]

It will be one of the following (i) an unsecured loan or (ii) an advanced payment against the issue of future shares when he has exercised the options agreement (ie some form of convertible loan).

We may be told in the near future but I suspect it will appear in the next report and accounts as a post balance sheet event.

So it is either of what I said. Either a loan which means the debt has just been transferred albeit to probably better terms or to shares.

It's splitting hairs. I just don't think we will see Moshiri investing the kind of money that was reported in the media until he has Bill's shares.

 

[MartyMcFly]

No, part of his DD process was establishing the likely location, cost and potential pitfalls of a new stadium in more than one location including the dock site.

This I absolutely agree with. Does Moshiri have any business in the construction industry?

It says on wikipedia that he had various interests in the steel industry. Maybe he saw buying Everton as a way to secure a large contract. He essentially would be paying himself to do the construction work and then he would sell recouping that investment once the stadium was built and we were a more attractive club.

It's just a theory.

 

[The Esk]

So it is either of what I said. Either a loan which means the debt has just been transferred albeit to probably better terms or to shares.

It's splitting hairs. I just don't think we will see Moshiri investing the kind of money that was reported in the media until he has Bill's shares.

There's a huge difference between Moshiri advancing funds than the previous lending arrangements, it's not just splitting hairs.

This I absolutely agree with. Does Moshiri have any business in the construction industry?

It says on wikipedia that he had various interests in the steel industry. Maybe he saw buying Everton as a way to secure a large contract. He essentially would be paying himself to do the construction work and then he would sell recouping that investment once the stadium was built and we were a more attractive club.

It's just a theory.

So he bought Everton with his own funds just to give Metalloinvest a company he owns 10% of, a contract likely to be worth less than 2 or 3% of their annual turnover?

 

[Connor]

Is right Farhad.

 

[Goat]

Sniff it haters.

 

[bizzaro]

Sniff it haters.

That's my line.

Plus I was the one who told you he's no Randy Lerner

 

[l4toffee]

Thank you farhad

 

[turner]

If you don't think anything has changed since he's been in charge: I've not seen the "We've offered 2 tickets to blood brothers and a curly wurly" joke in the transfer thread once. That's worth the takeover alone.

 

[turner]

I use the word "joke" loosely there.

 

[Ashtonian]

That's my line.

Plus I was the one who told you he's no Randy Lerner

that 9p per hour could be the difference between us paying the rent on finch farm and losing it and training in the car park mate.