Trading in Everton FC shares suspended by Liverpool stockbroker Blankstone Sington on behalf of Everton Shareholders Association amid Farad Moshiri’s proposed £250m investment. Tony McDonough reports
Everton FC’s biggest shareholder Farad Moshiri may be “compelled” to consider a full takeover of the club if his proposed £250m debt-for-equity deal goes through.
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 that Mr 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 the latest proposal, the the board is proposing to create and issue new shares that would take his stake up to 93.3%.
On Christmas Eve, the share dealing broker for the Everton Shareholders Association, Liverpool-based stockbroker Blankstone Sington, said it had taken the decision to suspend all trading in the club’s shares “at the present time”.
Blankstone Sington added that is currently seeking 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.
Neil Blankstone, director of Blankstone Sington, said: “The last traded price we matched buyer and seller at is £3,500 per share. With indications that the debt-for-equity may be priced at similar levels, we do not anticipate any material change.
“However, with in excess of 77% held by Farhad Moshiri’s investment vehicle, if he reaches in excess of 90%, then he may be compelled to consider a full takeover.”
Everton currently has around 1,500 shareholders, all of which are able to join the Shareholders’ Association. It exists to provide a voice for the many views that shareholders may have. The association elects an executive committee, which meets on a monthly basis to discuss ongoing issues prevalent to the club.
Until further information has been attained about the proposed deal, Blankstone Sington has suspended all attempts to match willing buyers and sellers for shares in the company. Anyone who has previously deposited share certificates and transfers to Blankstone Sington will have certificates returned in due course, whilst transfers will be destroyed.
Everton Shareholders who have queries related to this are asked to email EFC@blankstonesington.co.uk or see the Everton Shareholders website for more information. LBN has contacted Everton FC for comment.