Foreign Tycoon investment ?

That looks like a takeover of Foulger's 16-18% shareholding as was mooted before. If true, it's not 'new investment' money wise, just a takeover of Foulger's shares, but there would seem to be a likelihood of further investment in the future.

 

Planting the seed to see what will happen in the future, though as it seems no money to spend we can still plead poverty in the transfer window

 

I think this would be Delia preferred route for investment, she will have the opportunity to observe the new investors intentions and can then decide whether they are the people she would like to sell a controlling share to. I think they will want to keep some of their shares to give to Tom

 

I think that's right, Suffolk, so the next step could happen when more shares become available. Evolution rather than revolution.

 

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Could do with the AGM documents to really make sense of this, but sounds interesting (minus the Mick Dennis whining about how nobody is as good a reporter as he was). Not sure I can find the documents online.

 

Does this mean that Attanasio could buy Foulger's 18% and £10m in new shares to inject new money into the club?

 

I think that is £10m Rick. A lot of jealous be able to buy new shares for £10,000.

 

£10m cash injection for a slightly greater share of the club I think, yes?

I'm not sure if the shares that would be issued come with voting rights or not, so it might be cash without more control.

 

https://www.pinkun.com/sport/norwic...lders-letter-mark-attanasio-explainer-9227696

Pinkun explainer is up. Feels like we've largely put the details together ourselves, but interesting that there's a clear return for Attanasio seemingly built in?

 

I'm no financial expert, but as I understand it, while the nominal value of each new C Preference Share is £1, that doesn't mean they can be bought for £1. How big a cash injection into the club the sale of those C Preference Shares yields could in principle be much greater (or less!) than £10m depending on the price agreed or set (the issue price).

[Edit]
From the "explainer":
"£10m is only the total nominal value of this proposed allocation of C shares. All the other types of shares have a nominal value of £1 but have all had different issue prices. So, for example, if the issue price is higher than the £1 nominal value, the total amount raised increases. To put into practice, if a buyer purchased these shares at £10 each, there would be a million shares in total."

[Edit]
Third try. If £10m is the maximum nominal value of C shares that can be issued, then the total number of such shares that can be issued is 10 million. But the number of shares actually issued doesn't simply depend on the price paid; the purchase would take the form "x number of shares at £y per share". So a buyer could invest, say, £50m by purchasing a million such shares at £50 each. As I understand it, there is no information in the available documents detailing how many such shares it is intended to issue (only the maximum that could be issued), or the issue price for anyone buying them.

[Further edit]
The final sentence in that quoted bit from Connor Southwell's "explainer" still, therefore, seems to me to be incorrect. If someone were to purchase a tranche of these shares at £10 a share, there is still the question of how many shares he would be purchasing. That would depend on the issue price of the shares and the sum he wished to invest. I, for example, might want to purchase just one share at £10 a share, and thus invest just £10.

 

I'm not going to pretend to know how this arrangement works but Investers expect a return unlike Delia .

Unless cash is going to be made available for player recruitment or stadium expansion I don't see what we gain .
There may be marketing opportunities from a summer tour in the US or club merchandise sold at the Brewers stadium or his other franchises but as a Championship club I doubt many Americans that follow the EPL are too starstruck by our Premier league exploits.

 

I suspect the article is confused and it is more likely that the proposed investment is £10m, with the requisite shares having a nominal value of £1 each. That means the only variable is the number of shares, which will depend upon the issue price per share (which will likely be based upon a valuation of the club at the relevant point in time and a proportional number based on all shares and £10m/valuation).

That’s just a guess from my experience, but it could well be wrong.

 

Yes, I think that is very likely right Rob. More will no doubt be revealed in the "further announcement" promised once the shareholder meeting and subsequent legal formalities are completed.

 

Having now had time to read the 'explainer', these seem to be the key factors:

"This letter details that Attanasio could complete the transfer of shares with deputy club chairman Michael Foulger, as has been widely reported, and provide the club with an immediate cash injection through the purchase of a new form of share capital."

"It would instantly improve the balance sheet and equity in the club. They are non-controlling shares, so would prevent holders from making decisions about the club - although Attanasio is set to join the board, so will be given a vote in meetings on the running of the club and key decisions. The interest on those dividends would be seven per cent. If approved, that would provide Attanasio with a sweetener to make any investment worthwhile whilst offering Norwich a degree of security in the short term."

As I see it, Attanasio would be injecting around £10m into the club coffers with the incentive of 7% dividends in the short term and a seat on the Board from his purchase of Foulger's shares. That seems a reasonable balance for both sides.

 

£700k guaranteed return on investment seems a decent deal for Mr Attanasio (plus all the other perks / add ons). Would you expect more than 7% interest on bank loan of that size? I appreciate both parties probably have one eye on the longer term here but that seems like a pretty safe investment for him.

 

To be going ahead with all of this he must have a medium/ long term plan for the club to prosper and grow. This is likely to include ground re-development, but how great will stay unknown for the forseeable.

 

This was my thought too, and really for a club of our stature £10m isn't that much in the scheme of things. It won't cover the redevelopment of the City stand, for example (estimated £25-30m I think?), and if it were invested in the first team, it maybe buys one player who hopefully has the talent to improve the starting XI?

Devil is in the detail, terms, etc, but certainly doesn't sound like it'll change the day-to-day running of the club dramatically. That said, from the little I've read about the Brewers, that's fitting with Attanasio's approach. He hasn't spent big there with the aim of overnight success (so presumably no immediate £10m signing....).

 

That 7% only applies to the new preference shares I believe. Do existing shares, like the 18% Attanasio is buying from Michael Foulger have a similar rate?

As for what happens with the £10m coming in, if it does, is an open question. First of all, do we need to spend on new players now or do we already have enough to succeed in this league? I'd rather we wait until January for any permanent signings, but if it meant signing a quality player like Núñez for £3.5m or a loan to buy if promoted, then that would be good practice and leave money over for other priorities (evolution rather than revolution).