leicesterlass
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Post by leicesterlass on Jan 2, 2007 10:09:06 GMT -1
Just about
Milan Mandaric's takeover of Leicester City is close to completion and he could be in charge in about two weeks.
The Leicester Mercury understands the club's board has agreed to accept his revised terms - another green light for the Serbian millionaire, who amended his earlier offer in the light of added financial burdens which emerged in the due diligence process.
The original extraordinary general meeting of shareholders in mid-November approved the proposals, but the slow legal process left many fearing Mandaric might find his patience tested to breaking point.
At one stage it was felt his amended bid might not find favour with City, but while the terms are what a source close to the club called "significantly different" from the first time, the deal is very much on. The overall amount of the takeover is still about £25 million.
It is understood that it is the schedule of payments to shareholders which has been changed.
The board is confident that, by backing this latest Mandaric move, it can convince the rest of the shareholders, the majority of whom are in favour of Mandaric taking over, that this remains the best deal for the club.
The long, drawn-out process which has been frustrating for both parties, is now set to gather pace as it enters the finishing stretch. The Mercury understands there will be no need to call another extraordinary general meeting to rubber-stamp the takeover, which means delays should now be kept to a minimum.
City are confident that Mandaric will take over before the transfer window, which opened yesterday, closes at the end of this month, enabling City manager Robert Kelly to strengthen a squad which, after a good run, has lost its way again with two successive defeats.
There is every chance that Mandaric, who is out of the country until next Sunday and so will miss Saturday's FA Cup third round home tie with Fulham, will be in a controlling position by the next game, the trip to Colchester the following week.
That will come as a relief to those at City who were fearing for the future of the club, both financially and on the playing side.
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swindonfox
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Post by swindonfox on Jan 2, 2007 13:16:49 GMT -1
I really hope this is going to be sorted soon, everyone needs closure. Then changes can start happening! Hopefully we will be able to string together more than two or three wins if we get a couple (hmmmmm possibly may take quite a few more!!) of decent players to strengthen the team!
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leicesterlass
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Post by leicesterlass on Jan 2, 2007 13:20:57 GMT -1
I really hope this is going to be sorted soon, everyone needs closure. Then changes can start happening! Hopefully we will be able to string together more than two or three wins if we get a couple (hmmmmm possibly may take quite a few more!!) of decent players to strengthen the team! Now you're being ridiculous, two or three wins?! You'll be lucky!
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swindonfox
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Post by swindonfox on Jan 2, 2007 13:38:21 GMT -1
I really hope this is going to be sorted soon, everyone needs closure. Then changes can start happening! Hopefully we will be able to string together more than two or three wins if we get a couple (hmmmmm possibly may take quite a few more!!) of decent players to strengthen the team! Now you're being ridiculous, two or three wins?! You'll be lucky! LOL - well you never know with a few decent signings and possibly a new manager anything can happen, and with Leicester it usually does!!
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Post by HURLOCK on Jan 2, 2007 13:40:14 GMT -1
He must have a plan in place however, it will take time to implement. Furthermore he's comming to make money for himself
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swindonfox
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Post by swindonfox on Jan 2, 2007 13:49:38 GMT -1
Agreed but he knows he has to spend money to make money, otherwise he wouldn't be buying Leicester.
Love to know what is in his proposal - I think he will give Kelly until the end of the season and then get rid of him, Kelly is on a rolling contract so thats that done. I am sure he won't let RK buy anyone without his say so.
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leicesterlass
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Post by leicesterlass on Jan 2, 2007 13:50:00 GMT -1
He must have a plan in place however, it will take time to implement. Furthermore he's comming to make money for himself Obviously, he's a business man and sees us as nothing more than his next opportunity to make a few bob. But to do that he obviously will have to get us established in the premiership so if that's how things are going to work out then I'm not going to argue!
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Post by Tony Yeboah's Lunchbox on Jan 2, 2007 15:18:45 GMT -1
But its not done yet (Go on Milan, take your money and run before you regret it)
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swindonfox
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Post by swindonfox on Jan 2, 2007 15:46:14 GMT -1
You just want us to follow you down!! If it falls through then don't worry I am sure we will!
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Post by Tony Yeboah's Lunchbox on Jan 2, 2007 15:48:52 GMT -1
You just want us to follow you down!! If it falls through then don't worry I am sure we will! Hey, i'm merely looking out for a guy and his financial clout...i wouldn't want him to lose all that hard earned cash now would i? Actually, you can take our place, not follow us
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swindonfox
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Post by swindonfox on Jan 2, 2007 15:56:06 GMT -1
You just want us to follow you down!! If it falls through then don't worry I am sure we will! Hey, i'm merely looking out for a guy and his financial clout...i wouldn't want him to lose all that hard earned cash now would i? Actually, you can take our place, not follow us lol - I am sure he has enough to take a risk!! He knows we are good for it!! Probably!!! And we both know that ain't gonna happen! If it does then I will eat my shoes!!
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Post by Tony Yeboah's Lunchbox on Jan 2, 2007 15:59:15 GMT -1
Hey, i'm merely looking out for a guy and his financial clout...i wouldn't want him to lose all that hard earned cash now would i? Actually, you can take our place, not follow us lol - I am sure he has enough to take a risk!! He knows we are good for it!! Probably!!! And we both know that ain't gonna happen! If it does then I will eat my shoes!! Yummy! Enjoy!
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leicesterlass
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Post by leicesterlass on Jan 2, 2007 16:05:29 GMT -1
Lee I hope you're behaving yourself over here!
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Post by Tony Yeboah's Lunchbox on Jan 2, 2007 16:16:12 GMT -1
Lee I hope you're behaving yourself over here! Of course, Clo, of course! ;D
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leicesterlass
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Post by leicesterlass on Jan 2, 2007 16:19:22 GMT -1
Lee I hope you're behaving yourself over here! Of course, Clo, of course! ;D Hmmm
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leicesterlass
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Post by leicesterlass on Jan 3, 2007 11:03:52 GMT -1
It has been a long, hard road but it now looks as if Leicester City are finally heading for not so much a new era as a new Milan-ium.
New players will now be on the way as Milan Mandaric is set to be in control before the end of the January transfer window.
His arrival should spark a complete change in outlook, in the atmosphere around the stadium and, most importantly of all, in the dressing room.
Even in their Premiership bonanza days, City were always the poor relations.
Yes, their wage bill was high, but no more than average for the top flight, and their record buy is still the £5million paid to Wolves for Ade Akinbiyi.
Persuading potential recruits that the club were going places has always been difficult, but now everyone can see that a new energy, backed by long-awaited financial muscle, is on the way which should stimulate the players already here.
A glance at the league table is not a pretty sight with City in 18th spot, but it is a matter of putting across what can be achieved from here on in - maybe not this season but certainly the next - as the carrot to dangle in front of the transfer targets
Many fans will have asked, not without reason, why the takeover talks took so long. Everyone knows that when lawyers get involved, things are never rushed because getting paid handsomely by the hour is hardly a cattle-prod.
The Mandaric takeover first grabbed the imagination in mid-November when it was revealed the day after a heartening on-the-field success against Stoke City.
The pleasure of that victory was increased by the prospect of millions of pounds at last being pumped into City.
However. it was never going to be as simple as Mandaric walking in with a suitcase full of £25 million in cash as the deal comprised several elements, such as the £17million still owed on the stadium, payments to shareholders and outstanding debt.
The process was not helped by some behind the scenes at the Walkers Stadium.
A leak from "sources close to the club" suggested the deal was in trouble. Whether it was apprehension about their own positions, or wanting to keep the club home-grown, it does appear that Mandaric has now been accepted by all.
But throughout the stumbling blocks, one man stood firm, Mandaric himself.
It is known he could have gone to Wolves in the blink of an eye. The Molineux club were keen to smooth his path by removing most of the legal wranglings that City got entangled in.
There must have been times when he felt frustrated, unwanted even, as the scenario unfolded, but he has proved his commitment to City's cause by not walking away, especially when due diligence threw up the issues it did.
He wanted City and the fans want him which makes everyone a winner.
So we are now in the final stretch of a drawn-out affair which started in hysteria, cooled as the legalities took hold, before the initial wave of optimism re-emerged.
There might be some who point out that no-one has yet signed on the dotted line - "many a slip and all that" - but they are the old City. The new one is almost upon us.
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swindonfox
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Post by swindonfox on Jan 3, 2007 11:56:50 GMT -1
Wow - that is very well written!
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leicesterlass
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Post by leicesterlass on Jan 3, 2007 16:39:57 GMT -1
Radio Leicester are reporting that the EGM will be called within the next few days.
They also 'reveal' that James Johnson has resigned although everyone already knew a few days ago.
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leicesterlass
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Post by leicesterlass on Jan 5, 2007 11:11:00 GMT -1
Hi Trust Members
If has been sometime since our last e-mail update on the takeover situation, this was due to the confidentiality clauses that were inserted in the Mandaric indicative offer document which limits the circulation of information.
However as we now seem to be progressing to the final offer stage, we thought we should give you our assessment of the current situation.
For ease of reference and the potential of responding to additional questions from members, below we have allocated a letter to each paragraph.
a) The club have officially announced via a press release yesterday that James Johnson, one of the LCFC Non-Exec Directors, resigned last Friday at an LCFC board meeting, as our Observer was present during the meeting we are aware of some details but cannot expand too much. It would be best summarised that James Johnson felt uncomfortable with recommending to shareholders that they should accept the Mandaric bid and therefore felt it was best to step down.
b) We believe the board are moving towards the day when they will accept that they have the best deal they can obtain from Mandaric and put it forward to shareholders, probably with the recommendation that the bid should be accepted.
c) We believed the formal bid document would be circulated to shareholders this week, however following a further conversation with the club today, we now understand it is more likely to be circulated w/c 15th Jan. Most delays in the takeover process have been blamed on the LCFC Board in the media, in reality both parties have played their part, as is the case with this latest delay.
d) The shareholders at the EGM in November agreed unanimously to proceed with discussions, however many indicated at the meeting they needed much more information before they would commit to selling their shares, we still don't know if the final bid document will provide enough details to satisify the vast majority of shareholders. We detailed a list of questions directly to Mandaric's representatives, some of which were answered, prior to the EGM in November. Those left unanswered we cannot progress directly due to the takeover procedures which states all contact must be between the negotiating teams of the club and Mandaric.
e) The indicative offer from Mandaric has changed a number of times since the initial offer which was circulated prior to the shareholders EGM on Nov 18th. We can't provide details, other than to say that many of the amendments relate to the timing of payments.
f) In many takeover situations where phased payments are involved it is fairly common practice to utilise bank guarantees, so all parties feel comfortable that a delayed payment offers little risk. A key factor in whether the vast majority of LCFC shareholders will accept the takeover offer will be how many of them would be willing to accept phased payments without bank guarantees being offered by Mandaric, if that is what he proposes in his final offer.
g) The frequent use of a £25m by the Leicester Mercury has been mis-leading. This figure appears to include taking over the debt of the stadium, circa £17m according to their latest article. Please ignore the £25m figure, because as an example another media outlet did the simple calculation of £25m-£17m and then stated that Dowie (see point k below) would have £8m to spend in the transfer window, which is equally incorrect. The Trust Board finds it strange that 4 years ago as part of a consortium it was widely reported in the Mercury that the consortium took over the club for around £6m (no mention of the Teachers stadium loan), yet 4 years on the stadium loan is now within the Mandaric figures.
h) There has been some confusion about the need for the club to hold an EGM to approve an offer, given that requires 14 days notice prior to the meeting, with the further delay resulting. Our understanding is that although an EGM must be held, if the required % of shareholders are willing to commit in writing to sell their shares to Manderic, that this would be enable the club to indicate to Mandaric the takeover will be approved and then funds would be released for squad purposes prior to an EGM being held.
i) Without being able to go into details at this stage, working with the club we have sought to find a way for the Trust to retain it's shareholding in the club without having any impact on the takeover deal. This looks likely to happen, but we will explain how this situation arose at a later date. If this proves to be the situation, the Trust board will not call a members meeting, however should we be eventually approached to sell our shares, then subject to time constraints, the Trust Board plans to call a members meeting, so please check you e-mails regularly, as an e-mail notification would be the quickest method to call a short notice meeting.
j) Although as explained earlier we currently cannot have direct dialogue with the Mandaric team, prior to November 18th, his representative did confirm to the Trust, that the Trust would be offered a position on the Advisory Board which would be set up, assuming the takeover is approved. The club have since confirmed they also believe we would hold a position on this board. We don't at this stage know the full make up of this board.
k) The position of Rob Kelly has been subject to many rumours, the most consistent being Iain Dowie being linked with the managers position. The Trust has received conflicting information from various reliable sources and therefore is not in a position to clarify on this issue
l) If the Mandaric deal falls through, then the LCFC board will need to put in place a plan B very quickly to generate additionally funding. Currently the Board cannot approach other parties due to an exclusivity clause in the Mandaric indicative bid document, however other options were being looked at prior to the receipt of the Mandaric indicative bid, so we would anticipate a further flurry of activity should this be the situation.
m) Finally, the Trust Board cannot predict whether the final offer from Mandaric will receive enough backing from shareholders or not. We are certainly aware of shareholders who are totally in favour and a few who expressed serious reservations at the EGM, however the vast majority at the EGM wanted much more information and that makes it very difficult to predict.
Hopefully this gives you a feel about the current activity and we will provide further information as soon as we can. Our plan is to produce a members newsletter soon after the takeover situation is resolved featuring a diary of events as the takeover unfolded. We will include as much detail as we are legally able to do.
Regards The Foxes Trust Board
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leicesterlass
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Post by leicesterlass on Jan 5, 2007 11:12:19 GMT -1
Mandaric jets in to sign deal - Leicester MercuryMilan Mandaric is cutting short his holiday to fly back and help to finally secure his takeover of Leicester City. The Serbian-American tycoon is aware that time is of the essence because of the January transfer window and his eagerness to get to grips with boosting the club's fortunes. Putting the finishing touches to the paperwork is all that stands in the way of completing the deal, and it is even possible Mandaric might arrive in time to see tomorrow's FA Cup third-round tie against Fulham at the Walkers Stadium. That will very much depend on his travel schedule working out, but the main thing is that Mandaric is on his way - in more ways than one. Earlier this week, it emerged that the City board had accepted, in principle, Mandaric's new terms, amended after due diligence, and that the deal could now be accelerated. It was the second green light that Mandaric had received after the shareholders gave him their backing in November. And, shortly before leaving his holiday base in Hawaii, Mandaric praised the City board for their efforts, as well as hailing the club's supporters. He said: "I welcome the support of the Leicester City board in what has been a long, drawn-out and, at times, frustrating process. "I am sure those frustrations are equally shared among the shareholders and supporters but, hopefully, we are moving forward positively towards the conclusion of a deal that will help stabilise the club and take it forward. "I have untold respect for the shareholders who saved this club which, together with the overwhelming backing from the club's supporters, have been instrumental factors in ensuring my commitment to securing a deal." The signs are that the takeover will be finalised at some stage next week - or the week after at the latest - so there could still be two weeks of the transfer window left for City boss Robert Kelly to operate. However, with tomorrow's cup clash uppermost in his mind, the City boss is not going to be distracted by the imminent takeover. He said: "I have left all of this to others at the club to sort out. We cannot start thinking about matters we can't have any effect on." Is it time to crack open the bubbly stuff?!
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