Latest Takeover Rumour. The Moores / Noell one

[mikewex]

So how will these two new owners underwrite it?

That is key and without giving equity away I do not think they have enough personal equity to do so. That means they need another type of vehicle. Private equity.

They can get public investors into their consortium.

OK, either they get private equity into a stadium vehicle (which is what I'm talking about), or they get additional investors into a consortium to buy the club and build a stadium themselves (and I don't disagree with @The Esk in terms of the numbers not adding up either way without grants), but in neither of these scenarios would a NYSE float be the best route. Even the basic requirements

"To be listed a company must have more than 2,200 shareholders and an average daily trading volume of at least 100,000 shares. Generally, the company must have a total capitalization of at least $750 million or pre-tax earnings of more than $10 million."

would be problematic.

 

[Dymak]

I was under the impression that the Chinese takeover rumours were unfounded?

An article from today's Sunday Times is allegedly describing them as 'very serious bidders'.

http://insidermedia.com/insider/northwest/everton-linked-with-chinese-takeover

 

[Groucho]

An article from today's Sunday Times is allegedly describing them as 'very serious bidders'.

http://insidermedia.com/insider/northwest/everton-linked-with-chinese-takeover

Oh well, there you go.

 

[Dymak]

Oh well, there you go.

I'm still not convinced to be honest. The article reads like the Chinese will only bid if the US deal proves unsuccessful. I'm not sure that makes sense. Surely an interested party would want to bid anyway, and compete with the other interested party.

 

[dannythomas89]

This potential Chinese takeover is leaving a sweet and sour taste in my mouth.

 

[Woolly Blue]

Hello mate I don't speak Mandarin but was hoping you could translate a paragraph for me?

Let's start with this:

*checks thread title

*scratches head

*has light bulb moment

You're off topic there lad, I think we both know what comes next ...

 

[froggyted]

This has been a real hoot guys, but I'm turning in now so I can stay awake for transfer deadline day. Chow for now.

 

[froggyted]

*checks thread title

*scratches head

*has light bulb moment

You're off topic there lad, I think we both know what comes next ...

* frantically unlikes all Chico's posts.....

 

[dandydan]

Only if they are buying it via an NYSE listed company, which there isn't any particular reason why they would.

 

[sageyefc]

This has been a real hoot guys, but I'm turning in now so I can stay awake for transfer deadline day. Chow for now.

Goodnight

 

[froggyted]

Goodnight

See ya tomorrow on the transfer thread maybe.

 

[hibbo'sclass]

@The Esk @mikewex would you correct me if my understanding of REIT in Ireland is incorrect, but any REIT registered there has to have a minimum of 3 properties in it's portfolio within 3 years with no property being worth over 40% of the portfolio value, so presumably you guys are either talking about developing and then selling to an existing large REIT, or developing it through the vehicle (is this permissable?).
So in effect, the stadium would have to stand on it's own merits as an investment (which on gate receipts it won't).
So does this not leave the only option as substantial capital injection post takeover in order to make the external funding required affordable and doing it in-house.
Or am I being incredibly dense?

 

[Kiwi]

@bizzaro

 

[Coffee and TV]

I'm still not convinced to be honest. The article reads like the Chinese will only bid if the US deal proves unsuccessful. I'm not sure that makes sense. Surely an interested party would want to bid anyway, and compete with the other interested party.

The only explanation I can think of for that is that the Chinese group might want to look at the books before bidding.

 

[The Esk]

@The Esk @mikewex would you correct me if my understanding of REIT in Ireland is incorrect, but any REIT registered there has to have a minimum of 3 properties in it's portfolio within 3 years with no property being worth over 40% of the portfolio value, so presumably you guys are either talking about developing and then selling to an existing large REIT, or developing it through the vehicle (is this permissable?).
So in effect, the stadium would have to stand on it's own merits as an investment (which on gate receipts it won't).
So does this not leave the only option as substantial capital injection post takeover in order to make the external funding required affordable and doing it in-house.
Or am I being incredibly dense?

You are totally correct mate.

It makes no sense for any new owners to have the stadium as a stand alone investment, even if the regulations permitted.

A new stadium has to be owned by the vehicle that owns Everton, the football club - the value lies in a profitable football club (through gate receipts, sponsorship revenue, and commercial revenues) plus the added NAV of a new stadium.

Personally I believe the same could be achieved at less cost with a redeveloped Goodison.