Deleted
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Post by Deleted on Apr 4, 2018 18:46:20 GMT
Wait for it then ladeez and gentleman,which of the itk'ers are gonna be the first to state as fact that the Al-Q's knew in May 2017 the UWE Stadium was a non starter! Obvs really
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Post by legas on Apr 4, 2018 19:02:49 GMT
could be a requirement of the investing company (stadium funding) to own part of the club ? If they have been trying to attract stadium finance by offering a 40% stake it's hardly surprising there have been no takers since May 2017. My guess is that anyone risking £20+ million to pay for the redevelopment would certainly want control of the company and the Dwane Sports charge removed. Maybe go on Dragons’ Den and offer 50% for 40 million?
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Post by Topper Gas on Apr 4, 2018 20:00:35 GMT
could be a requirement of the investing company (stadium funding) to own part of the club ? If they have been trying to attract stadium finance by offering a 40% stake it's hardly surprising there have been no takers since May 2017. My guess is that anyone risking £20+ million to pay for the redevelopment would certainly want control of the company and the Dwane Sports charge removed. But why offer 40% as new shares when they already own 92% if the existing shares, why not just sell them 40% of the existing shares? At best doing it this way will raise £m's not the £10m's required for a new stadium, perhaps it's a way to fund the training ground development?
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Post by peterparker on Apr 4, 2018 20:34:57 GMT
If they have been trying to attract stadium finance by offering a 40% stake it's hardly surprising there have been no takers since May 2017. My guess is that anyone risking £20+ million to pay for the redevelopment would certainly want control of the company and the Dwane Sports charge removed. But why offer 40% as new shares when they already own 92% if the existing shares, why not just sell them 40% of the existing shares? At best doing it this way will raise £m's not the £10m's required for a new stadium, perhaps it's a way to fund the training ground development? Or perhaps it is nothing and this just keeps it open
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Post by swissgas on Apr 4, 2018 22:51:35 GMT
If they have been trying to attract stadium finance by offering a 40% stake it's hardly surprising there have been no takers since May 2017. My guess is that anyone risking £20+ million to pay for the redevelopment would certainly want control of the company and the Dwane Sports charge removed. But why offer 40% as new shares when they already own 92% if the existing shares, why not just sell them 40% of the existing shares? At best doing it this way will raise £m's not the £10m's required for a new stadium, perhaps it's a way to fund the training ground development? I believe a transfer of existing shares attracts stamp duty whereas a new issue does not. Funding the rebuilding of a football ground is not a normal commercial property transaction where there can be a projected rate of return. It's a high risk venture which will only be attractive to someone who wants to share the thrill of owning or part owning a football club and possibly get a pay back if that club is successful. The £500 000 nominal value of the increased share capital is a significant figure in the context of what the total issued share capital would be after it was subscribed for because it would still leave Dwane Sports with control. The actual injection of finance from the new shareholder would need to be much larger to pay for the stadium redevelopment. The problem for Dwane Sports is that as things stand they will have only put in about £15 million, and that is secured, so they can hardly expect a new investor to put in substantially more but unsecured and with a much smaller shareholding. Losing control is a huge step to take but if you don't have the resources to do a job properly yourself then it may be best to be content with a minority share in a success rather than a majority share in a failure.
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Post by Topper Gas on Apr 5, 2018 7:40:42 GMT
But why offer 40% as new shares when they already own 92% if the existing shares, why not just sell them 40% of the existing shares? At best doing it this way will raise £m's not the £10m's required for a new stadium, perhaps it's a way to fund the training ground development? I believe a transfer of existing shares attracts stamp duty whereas a new issue does not. Funding the rebuilding of a football ground is not a normal commercial property transaction where there can be a projected rate of return. It's a high risk venture which will only be attractive to someone who wants to share the thrill of owning or part owning a football club and possibly get a pay back if that club is successful. The £500 000 nominal value of the increased share capital is a significant figure in the context of what the total issued share capital would be after it was subscribed for because it would still leave Dwane Sports with control. The actual injection of finance from the new shareholder would need to be much larger to pay for the stadium redevelopment. The problem for Dwane Sports is that as things stand they will have only put in about £15 million, and that is secured, so they can hardly expect a new investor to put in substantially more but unsecured and with a much smaller shareholding. Losing control is a huge step to take but if you don't have the resources to do a job properly yourself then it may be best to be content with a minority share in a success rather than a majority share in a failure. Yes, you are correct re the stamp duty, although if what you suggest is happening then the timing seems odd given that we've not even applied for pp yet let alone obtained it, although I guess there's a 15 month time frame allowed to complete the transaction.
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Post by peterparker on Apr 5, 2018 7:53:03 GMT
I believe a transfer of existing shares attracts stamp duty whereas a new issue does not. Funding the rebuilding of a football ground is not a normal commercial property transaction where there can be a projected rate of return. It's a high risk venture which will only be attractive to someone who wants to share the thrill of owning or part owning a football club and possibly get a pay back if that club is successful. The £500 000 nominal value of the increased share capital is a significant figure in the context of what the total issued share capital would be after it was subscribed for because it would still leave Dwane Sports with control. The actual injection of finance from the new shareholder would need to be much larger to pay for the stadium redevelopment. The problem for Dwane Sports is that as things stand they will have only put in about £15 million, and that is secured, so they can hardly expect a new investor to put in substantially more but unsecured and with a much smaller shareholding. Losing control is a huge step to take but if you don't have the resources to do a job properly yourself then it may be best to be content with a minority share in a success rather than a majority share in a failure. Yes, you are correct re the stamp duty, although if what you suggest is happening then the timing seems odd given that we've not even applied for pp yet let alone obtained it, although I guess there's a 15 month time frame allowed to complete the transaction. yes and no. The resolution could easily just be passed again at the next AGM, or a completely new resolution. Dwane own 92% so whatever they propose will be passed
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Post by Topper Gas on Apr 5, 2018 9:31:44 GMT
Yes, you are correct re the stamp duty, although if what you suggest is happening then the timing seems odd given that we've not even applied for pp yet let alone obtained it, although I guess there's a 15 month time frame allowed to complete the transaction. yes and no. The resolution could easily just be passed again at the next AGM, or a completely new resolution. Dwane own 92% so whatever they propose will be passed Just noticed the document uploaded dates back to May 2017, I guess the resolution was renewed this year although if they've spend the last year looking to offload the shares I doubt anybody is rushing to buy them!
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Post by countygroundhotel on Apr 5, 2018 10:35:11 GMT
If they have been trying to attract stadium finance by offering a 40% stake it's hardly surprising there have been no takers since May 2017. My guess is that anyone risking £20+ million to pay for the redevelopment would certainly want control of the company and the Dwane Sports charge removed. But why offer 40% as new shares when they already own 92% if the existing shares, why not just sell them 40% of the existing shares? At best doing it this way will raise £m's not the £10m's required for a new stadium, perhaps it's a way to fund the training ground development? The obvious difference is that if they sell shares they already own the cash will go to Dwane Sports. If it's new shares issued in BRFC 1883 then the cash will go into club coffers, of course this then maybe used to repay the revolving credit facility. Or perhaps its a debt write off and the new shares will be taken up by Dwane Sports and the revolving credit facility cleared. I wouldn't hold your breathe on that last one though.
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Post by knowall on Apr 6, 2018 10:16:12 GMT
But why offer 40% as new shares when they already own 92% if the existing shares, why not just sell them 40% of the existing shares? At best doing it this way will raise £m's not the £10m's required for a new stadium, perhaps it's a way to fund the training ground development? The obvious difference is that if they sell shares they already own the cash will go to Dwane Sports. If it's new shares issued in BRFC 1883 then the cash will go into club coffers, of course this then maybe used to repay the revolving credit facility. Or perhaps its a debt write off and the new shares will be taken up by Dwane Sports and the revolving credit facility cleared. I wouldn't hold your breathe on that last one though. conspiracy theories - all in the fullness of time
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