Broker lifts suspension on trading of Everton FC shares

Stockbroker Blankstone Sington suspended trading in Everton FC shares on Christmas Eve as it sought assurances over Farhad Moshiri’s proposed £250m debt-for-equity deal. Tony McDonough reports

Farhad Moshiri
Everton Football Club majority shareholder Farhad Moshiri


Everton FC’s share dealing broker has lifted the suspension on the trading of the Premier League club’s shares after receiving assurances relating to a proposed £250m debt-for-equity deal.

On December 11, Everton published its annual accounts which showed a record pre-tax loss of £134.7m. On the same day it was announced majority shareholder Farhad Moshiri was prepared to inject a further £250m into the club to add to the £400m he has already invested.

Via Blue his Heaven Holdings Limited vehicle, Mr Moshiri currently owns 77.2% of the Premier League club. Under proposal, the the board is proposing to create and issue new shares that would take his stake up to 93.3%.

On Christmas Eve, Everton share dealing broker, Liverpool-based Blankstone Sington,  said it had taken the decision to suspend all trading in the club’s shares.

It sought clarification from Everton FC, with the assistance of the Everton Shareholders Association, on the exact details of the club’s proposal to create and issue new shares to Blue Heaven Holdings. It suggested Mr Moshiri may be “compelled” to consider a full takeover of the club if the debt-for-equity deal was to go through.

However, following assurances at the club’s AGM on January 14 that they do not anticipate any changes to existing shareholder rights, Blankstone Sington has recommenced trading of Everton FC shares can resume.

The club also confirmed that whilst the overall share ownership percentages will change, there will be no practical change for existing shareholders. Neil Blankstone, director of Blankstone Sington, said: “Interest in Everton FC shares has been considerable over the last few days.

“Transactions have already taken place at the matched bargain price of £3,500 per share and with interest as it is, I can foresee that sellers may well be looking for a higher price going forward.

“We anticipate completing further transactions today at the current price, but it may be that sellers will now deem that the current valuation is no longer a reflection of either the true value of the club nor the pent-up demand which appears to exist for these shares.”

Everton shareholders who have queries related to this matter are asked to email or see the Everton Shareholders Association website for more information.

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