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The Takeover Thread - Duchatelet Finally Sells (Jan 2020)

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  • Pedro45
    Pedro45 Posts: 5,820
    Pedro45 said:
    I think the £21.5 million might equal the debt we have lost over the last three years. If so, it could be a move by RD to transfer this debt into equity (as he can do under FFP rules) which in turn means that (maybe) the new owners will take over the club with no historic loss on the accounts as far as FFP is concerned. This is important as you can only rack up losses of three times your revenue over a three year period so will give the new guys a chance to really throw some cash into transfers etc if they can/want to without recourse to RD's loss making seasons. Hope so...
    I thought the 'debt for shares' thing was only allowed in League One.
    Well as far as the accounts go, maybe as we were during this financial year it's allowed?
  • Airman Brown
    Airman Brown Posts: 15,722
    Addickted said:
    £21,494,704 works out at almost exactly 25m Euros. A nice round sum for a European businessman.

    So have Murray's 5m 50p shares have now doubled in value?
    Murray doesn’t hold any shares and hasn’t since 2014. Not sure why this keeps coming back?
  • Dippenhall
    Dippenhall Posts: 3,918
    The statement of capital deposited with Companies House says "No shares allocated other than for cash".  This would rule out shares being issued to a creditor for cancellation of debt.  It also means a huge dilution in respect of the existing 6.5m shares so only works if RD retains ownership of 100% of shares. I.E If Charlton is valued at £50m then each of 6.5m shares was worth about £8. Each share of the 33m shares is now worth around £1.50.  

    The share restructure has no impact on the profit and loss figures because the cash is not revenue, it is shareholder capital.  It only affects the profit and loss account if it is spent.  The balance sheet will be completely restructured after the change of ownership so see no reason why RD would want to mess about with reducing debt it in advance.  

    Makes more logic if it is to permit the sale to go through and generate a legitimate fund of cash for meeting commitments to sustain the club in the short term that is effectively a loan from RD dressed up as equity, rather than paper adjustments to RD's mix of share/debt only affecting the balance sheet.  Not saying I know anything but just trying to apply logic - dangerous when it comes to RD I know.

  • ValleyGary
    ValleyGary Posts: 37,967
    May as well be speaking Japanese.
  • SantaClaus
    SantaClaus Posts: 7,650
    The club's failure to deny the Japanese takeover rumours has increased speculation that the ESI deal is dead.
  • CAFCsayer
    CAFCsayer Posts: 10,222
    The statement of capital deposited with Companies House says "No shares allocated other than for cash".  This would rule out shares being issued to a creditor for cancellation of debt.  It also means a huge dilution in respect of the existing 6.5m shares so only works if RD retains ownership of 100% of shares. I.E If Charlton is valued at £50m then each of 6.5m shares was worth about £8. Each share of the 33m shares is now worth around £1.50.  

    The share restructure has no impact on the profit and loss figures because the cash is not revenue, it is shareholder capital.  It only affects the profit and loss account if it is spent.  The balance sheet will be completely restructured after the change of ownership so see no reason why RD would want to mess about with reducing debt it in advance.  

    Makes more logic if it is to permit the sale to go through and generate a legitimate fund of cash for meeting commitments to sustain the club in the short term that is effectively a loan from RD dressed up as equity, rather than paper adjustments to RD's mix of share/debt only affecting the balance sheet.  Not saying I know anything but just trying to apply logic - dangerous when it comes to RD I know.

    21.5 million warchest for Bowyer in Jan confirmed by Dippenhal... There you have it
  • Henry Irving
    Henry Irving Posts: 85,198
    Note that Duchatelet sold StTruiden, but not the ground, to a Japanese company.

    @ValleyGary ITK
  • CAFCsayer
    CAFCsayer Posts: 10,222
    The club's failure to deny the Japanese takeover rumours has increased speculation that the ESI deal is dead.
    I've heard Andrew Muir is looking to get involved with the Japs in a consortium
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  • seth plum
    seth plum Posts: 53,448
    Is there a simple analogy to explain this, not including specialist terms, that an ordinary person has a chance of understanding?
  • Nug
    Nug Posts: 4,623
    seth plum said:
    Is there a simple analogy to explain this, not including specialist terms, that an ordinary person has a chance of understanding?
    Many have tried but all have failed.
  • Scoham
    Scoham Posts: 37,362
    The next two posts on this thread could be crucial.
  • Bedsaddick
    Bedsaddick Posts: 24,713

  • soapboxsam
    soapboxsam Posts: 23,229
    edited December 2019
    Cafc43v3r said:
    Can anyone please explain -

    - How shared are made and how they generate instant cash?
    - Are they literally introduced to the stock market and bought up straight away?
    - How clubs / companies (Man U) can be "refloated" on the markets time and again?

    I'm sure it ain't just me on here who don't understand all this
    I'll try, using a house as an example :p

    You buy a house for £100,000 (I live in Bradford so it is realistic).

    You put in £40k and get a mortgage for £60k.   If you think of that as a 100 shares in "the house" you own 40, the bank own 60.  Every year you buy 2 shares back off the bank.  So after 10 years you own 60 and the bank own 40.

    If you sell the house for 120k (a take over) the new owner buys all the shares, both yours and the banks.  They may do so as an individual or as a consortium (a bank normally being the money man). 

    Fowever if you sell some of your shares to a 3rd party you "trouser the cash" but own less of the house.

    Every time a house is mortgaged it's a bit like a share issue, and you slowly buy back the shares.  Once you own enough of the shares you can remortgage, or issue more shares. 




    Can we convert this news into a house buying analogy so we know where we are in the chain ?
    Cheers @Cafc43v3r
    Can't wait to get the keys to this house, give  it a good clean, replace the broken chairs, and get rid of the old sofa with the stuffing knocked out of it. The window is swinging open in January so damaged goods need to be jettisoned and new more expensive models brought in to reflect the new status.
    I know the house is overpriced but it's location, location, location. 
    Have we won the Lottery ?
    You can bet your house on it.
  • CAFCsayer
    CAFCsayer Posts: 10,222
    edited December 2019
    CAFCsayer said:
    The statement of capital deposited with Companies House says "No shares allocated other than for cash".  This would rule out shares being issued to a creditor for cancellation of debt.  It also means a huge dilution in respect of the existing 6.5m shares so only works if RD retains ownership of 100% of shares. I.E If Charlton is valued at £50m then each of 6.5m shares was worth about £8. Each share of the 33m shares is now worth around £1.50.  

    The share restructure has no impact on the profit and loss figures because the cash is not revenue, it is shareholder capital.  It only affects the profit and loss account if it is spent.  The balance sheet will be completely restructured after the change of ownership so see no reason why RD would want to mess about with reducing debt it in advance.  

    Makes more logic if it is to permit the sale to go through and generate a legitimate fund of cash for meeting commitments to sustain the club in the short term that is effectively a loan from RD dressed up as equity, rather than paper adjustments to RD's mix of share/debt only affecting the balance sheet.  Not saying I know anything but just trying to apply logic - dangerous when it comes to RD I know.

    21.5 million warchest for Bowyer in Jan confirmed by Dippenhal... There you have it
    In all seriousness @Dippenhall is that how you're interpreting this? In layman's terms, does this look like a short term cash injection by Roland, which ESI will be paying him back on completion? 
  • seth plum
    seth plum Posts: 53,448
    edited December 2019
    I though Lehman Brothers went bust.

  • Uboat
    Uboat Posts: 12,194
    CAFCsayer said:
    CAFCsayer said:
    The statement of capital deposited with Companies House says "No shares allocated other than for cash".  This would rule out shares being issued to a creditor for cancellation of debt.  It also means a huge dilution in respect of the existing 6.5m shares so only works if RD retains ownership of 100% of shares. I.E If Charlton is valued at £50m then each of 6.5m shares was worth about £8. Each share of the 33m shares is now worth around £1.50.  

    The share restructure has no impact on the profit and loss figures because the cash is not revenue, it is shareholder capital.  It only affects the profit and loss account if it is spent.  The balance sheet will be completely restructured after the change of ownership so see no reason why RD would want to mess about with reducing debt it in advance.  

    Makes more logic if it is to permit the sale to go through and generate a legitimate fund of cash for meeting commitments to sustain the club in the short term that is effectively a loan from RD dressed up as equity, rather than paper adjustments to RD's mix of share/debt only affecting the balance sheet.  Not saying I know anything but just trying to apply logic - dangerous when it comes to RD I know.

    21.5 million warchest for Bowyer in Jan confirmed by Dippenhal... There you have it
    In all seriousness @Dippenhall is that how you're interpreting this? In lehmans terms, does this look like a short term cash injection by Roland, which ESI will be paying him back on completion? 

  • CafcSCP
    CafcSCP Posts: 1,464
    As I was three parts pissed last night I’ve actually forgotten what happened anyway.
    Same, and having to read it again from about 4pm yesterday 
  • CAFCsayer
    CAFCsayer Posts: 10,222
    :) 
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  • SantaClaus
    SantaClaus Posts: 7,650
    Effectively telling all the other clubs that we have a large transfer 'war chest' is an odd way of conducting business. 
  • Uboat
    Uboat Posts: 12,194
    Effectively telling all the other clubs that we have a large transfer 'war chest' is an odd way of conducting business. 
    It would be, but that hasn't happened has it?
  • i_b_b_o_r_g
    i_b_b_o_r_g Posts: 18,948
    Maybe the reputed £60m, broken down is -

    - £40m (approx) original asking price.
    - £20m (approx) generated from the shares to go towards running costs and players bought in January, if the EFL process went over.

    This could also explain why the new people are acting like they're steering the ship already?
  • Dippenhall
    Dippenhall Posts: 3,918
    CAFCsayer said:
    CAFCsayer said:
    The statement of capital deposited with Companies House says "No shares allocated other than for cash".  This would rule out shares being issued to a creditor for cancellation of debt.  It also means a huge dilution in respect of the existing 6.5m shares so only works if RD retains ownership of 100% of shares. I.E If Charlton is valued at £50m then each of 6.5m shares was worth about £8. Each share of the 33m shares is now worth around £1.50.  

    The share restructure has no impact on the profit and loss figures because the cash is not revenue, it is shareholder capital.  It only affects the profit and loss account if it is spent.  The balance sheet will be completely restructured after the change of ownership so see no reason why RD would want to mess about with reducing debt it in advance.  

    Makes more logic if it is to permit the sale to go through and generate a legitimate fund of cash for meeting commitments to sustain the club in the short term that is effectively a loan from RD dressed up as equity, rather than paper adjustments to RD's mix of share/debt only affecting the balance sheet.  Not saying I know anything but just trying to apply logic - dangerous when it comes to RD I know.

    21.5 million warchest for Bowyer in Jan confirmed by Dippenhal... There you have it
    In all seriousness @Dippenhall is that how you're interpreting this? In layman's terms, does this look like a short term cash injection by Roland, which ESI will be paying him back on completion? 
    More or less.  

    I am buying a house that needs renovation.  I've exchanged contracts but the roof needs replacing this week before it collapses.  The owner agrees to get it fixed and I add the additional cost to the purchase price on completion.  Otherwise the owner's property goes down in value and the purchaser walks away or the purchaser acquires a house without a roof.
  • Uboat
    Uboat Posts: 12,194
    CAFCsayer said:
    CAFCsayer said:
    The statement of capital deposited with Companies House says "No shares allocated other than for cash".  This would rule out shares being issued to a creditor for cancellation of debt.  It also means a huge dilution in respect of the existing 6.5m shares so only works if RD retains ownership of 100% of shares. I.E If Charlton is valued at £50m then each of 6.5m shares was worth about £8. Each share of the 33m shares is now worth around £1.50.  

    The share restructure has no impact on the profit and loss figures because the cash is not revenue, it is shareholder capital.  It only affects the profit and loss account if it is spent.  The balance sheet will be completely restructured after the change of ownership so see no reason why RD would want to mess about with reducing debt it in advance.  

    Makes more logic if it is to permit the sale to go through and generate a legitimate fund of cash for meeting commitments to sustain the club in the short term that is effectively a loan from RD dressed up as equity, rather than paper adjustments to RD's mix of share/debt only affecting the balance sheet.  Not saying I know anything but just trying to apply logic - dangerous when it comes to RD I know.

    21.5 million warchest for Bowyer in Jan confirmed by Dippenhal... There you have it
    In all seriousness @Dippenhall is that how you're interpreting this? In layman's terms, does this look like a short term cash injection by Roland, which ESI will be paying him back on completion? 
    More or less.  

    I am buying a house that needs renovation.  I've exchanged contracts but the roof needs replacing this week before it collapses.  The owner agrees to get it fixed and I add the additional cost to the purchase price on completion.  Otherwise the owner's property goes down in value and the purchaser walks away or the purchaser acquires a house without a roof.
    Proof that house-buying analogies work. 
  • bobmunro
    bobmunro Posts: 20,840
    Maybe the reputed £60m, broken down is -

    - £40m (approx) original asking price.
    - £20m (approx) generated from the shares to go towards running costs and players bought in January, if the EFL process went over.

    This could also explain why the new people are acting like they're steering the ship already?
    By Jove, I think he’s got it.
  • seth plum
    seth plum Posts: 53,448
    CAFCsayer said:
    CAFCsayer said:
    The statement of capital deposited with Companies House says "No shares allocated other than for cash".  This would rule out shares being issued to a creditor for cancellation of debt.  It also means a huge dilution in respect of the existing 6.5m shares so only works if RD retains ownership of 100% of shares. I.E If Charlton is valued at £50m then each of 6.5m shares was worth about £8. Each share of the 33m shares is now worth around £1.50.  

    The share restructure has no impact on the profit and loss figures because the cash is not revenue, it is shareholder capital.  It only affects the profit and loss account if it is spent.  The balance sheet will be completely restructured after the change of ownership so see no reason why RD would want to mess about with reducing debt it in advance.  

    Makes more logic if it is to permit the sale to go through and generate a legitimate fund of cash for meeting commitments to sustain the club in the short term that is effectively a loan from RD dressed up as equity, rather than paper adjustments to RD's mix of share/debt only affecting the balance sheet.  Not saying I know anything but just trying to apply logic - dangerous when it comes to RD I know.

    21.5 million warchest for Bowyer in Jan confirmed by Dippenhal... There you have it
    In all seriousness @Dippenhall is that how you're interpreting this? In layman's terms, does this look like a short term cash injection by Roland, which ESI will be paying him back on completion? 
    More or less.  

    I am buying a house that needs renovation.  I've exchanged contracts but the roof needs replacing this week before it collapses.  The owner agrees to get it fixed and I add the additional cost to the purchase price on completion.  Otherwise the owner's property goes down in value and the purchaser walks away or the purchaser acquires a house without a roof.
    I thought you were buying the house.
    Is the purchaser an additional element?
  • i_b_b_o_r_g
    i_b_b_o_r_g Posts: 18,948
    bobmunro said:
    Maybe the reputed £60m, broken down is -

    - £40m (approx) original asking price.
    - £20m (approx) generated from the shares to go towards running costs and players bought in January, if the EFL process went over.

    This could also explain why the new people are acting like they're steering the ship already?
    By Jove, I think he’s got it.
    Not just a pretty face mate

    I have had enough guesses though and covered just about every eventuality 
  • i_b_b_o_r_g
    i_b_b_o_r_g Posts: 18,948
    Wonder if, as a result of this shares carry on, the first bit of major news is that LB and the management team have been given decent contract offers
  • CAFCsayer
    CAFCsayer Posts: 10,222
    CAFCsayer said:
    CAFCsayer said:
    The statement of capital deposited with Companies House says "No shares allocated other than for cash".  This would rule out shares being issued to a creditor for cancellation of debt.  It also means a huge dilution in respect of the existing 6.5m shares so only works if RD retains ownership of 100% of shares. I.E If Charlton is valued at £50m then each of 6.5m shares was worth about £8. Each share of the 33m shares is now worth around £1.50.  

    The share restructure has no impact on the profit and loss figures because the cash is not revenue, it is shareholder capital.  It only affects the profit and loss account if it is spent.  The balance sheet will be completely restructured after the change of ownership so see no reason why RD would want to mess about with reducing debt it in advance.  

    Makes more logic if it is to permit the sale to go through and generate a legitimate fund of cash for meeting commitments to sustain the club in the short term that is effectively a loan from RD dressed up as equity, rather than paper adjustments to RD's mix of share/debt only affecting the balance sheet.  Not saying I know anything but just trying to apply logic - dangerous when it comes to RD I know.

    21.5 million warchest for Bowyer in Jan confirmed by Dippenhal... There you have it
    In all seriousness @Dippenhall is that how you're interpreting this? In layman's terms, does this look like a short term cash injection by Roland, which ESI will be paying him back on completion? 
    More or less.  

    I am buying a house that needs renovation.  I've exchanged contracts but the roof needs replacing this week before it collapses.  The owner agrees to get it fixed and I add the additional cost to the purchase price on completion.  Otherwise the owner's property goes down in value and the purchaser walks away or the purchaser acquires a house without a roof.
    What if they were not to get EFL clearance though? 
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