It looks like there could be a change at the top of Carrow Road. Norfolk Holdings has reached an agreement to enable majority control of Norwich City, subject to takeover panel and shareholder appoval. Full story from the club's website on link below: https://www.canaries.co.uk/content/...nt-to-enable-majority-control-of-norwich-city
Always seemed the logical conclusion of things. Am I reading that correctly that "Norfolk Holdings" have put £59m in so far? Or is that what they've spent on NCFC shares?
According to the Pinkun, Attanasio's £59m worth of loans, if a waiver is agreed by independant shareholders, they would be converted into shares and his group would own 85% of the club with Delia & M W J decreasing to 10% from March 2025. The couple couild step down from their roles and become Honorary life presidents after 27 years on the board
As I understand it, Rule 9 of the Takeover Code is the Mandatory Offer rule, requiring anyone who becomes majority shareholder to make an offer to purchase all remaining shares. The waiver would mean that Norfolk Holdings do not have to make an offer to DS & MWJ, or to the independent shareholders such as the Canary Trust, for the purchase of their shares. So control of the club would pass to Norfolk Holdings via the conversion of existing debt to shares, with no further buyout of shareholders.
So with the share dilution, does that effectively mean that Delia and Michael have turned down the opportunity to be "bought out" and make money for themselves, and instead had the clubs debt to Norfolk Holdings converted into shares?
Yes, exactly that I think. They have always said they don't want to make money out the Club, and this is them keeping their word. They will of course still own the shares they own now, in the region of 328,000 Ordinary shares. But, representing only 10% of the issued shares (as opposed to 40% currently), the value of their holding will have decreased significantly.
Further to my post #7 above, if I remember correctly, Delia & Michael acquired their majority ownership 27 years ago for £3m. It has been calculated that, based on the size of the debt being converted to shares, the current transfer of ownership to Norfolk Holdings values the club at around £80m, making Delia & Michael's remaining 10% worth around £8m. Depending on which inflation calculator you use, that would represent either a very modest net gain of around £500k or no gain at all. It all looks to have been structured to produce exactly that outcome. That £80m valuation also indicates the true extent of Delia and Michael's altruism.
Not quite - you would need to know the deal specifics. The important thing to remember is that, in terms of principles, diluting ownership in this way does not always directly have an impact on value like this (or it’s impossible to know the impact). However, if the deal allows Attanasio to gain control at a value less than they could have got from a third party, then that could mean their shares have effectively been undervalued as a result. Hopefully that makes sense? If you have a bakery shop which sells two bread rolls a day and you bring in a business partner who sells ten bread rolls a day at the same time, your overall control of the bakery shop business has been significantly reduced but you haven’t necessarily lost value (unless you are selling bread rolls for less now).
Good job Delia and Michael gave Attanasio a fair deal, he can't even afford sand! https://www.latimes.com/california/...road-beach-lawsuit-says?utm_source=reddit.com
