Ashley takes Magpies off the stock market (From The Northern Echo)

Ashley takes Magpies off the stock market

8:52am Thursday 19th July 2007

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NEWCASTLE United was yesterday taken off the London Stock Exchange after the club's takeover by billionaire businessman Mike Ashley.

Sportswear magnate Mr Ashley, through his company St James Holdings Limited, now owns a stake of at least 94.5 per cent in the club, after officially completing his purchase last month when his £133m buyout offer was unconditionally accepted.

The club stopped trading as a public limited company at 8am yesterday, and will trade as a private company under Mr Ashley and his newly-appointed team.

Sources close to the Buckinghamshire billionaire suggest he is now ready to invest up to £50m in the club as he bids to make it the "biggest and best" football club in the country.

A statement to the Stock Exchange yesterday said: "The directors of Newcastle United plc wish to announce that, following an application to the UK Listing Authority, the listing of the company's ordinary shares of 5p each on the Official List has been cancelled and the shares have ceased trading on the London Stock Exchange, in each case with effect from 8am this morning."

The move follows Mr Ashley - whose Sports World International empire includes brands such as Lillywhites, Dunlop, Kangol and Lonsdale - buying the 41.6 per cent stake in the club held by the family of Sir John Hall in May for £55m, and has increased his stake steadily in the weeks since.

His offer of 100p a share was increased to 101p, and was unconditionally accepted by shareholders on June 15, allowing Mr Ashley to complete his takeover and apply for the club's stock to be cancelled, which was a formality after his stake went above 90 per cent.

Anthony Platts, assistant director and investment manager at Tees Valley-based Wise Speke, said the club would now be freed from certain restrictions it would have faced as a plc.

"Any dealings in the company would previously have to be announced on the Stock Exchange, and any significant transfer of assets - which, in Newcastle's case would be players - would need to be detailed," he said.

"Now the company has been de-listed, in theory, the business and its dealings should be able to run more smoothly."

Mr Ashley also said he would extend the deadline for any shareholders still to trade their stock to him until next month.

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