Broker temporarily suspends trading in Everton shares

Thursday, 24 December, 2020 16comments  |  Jump to last
Blankstone Sington, the designated broker of shares in Everton FC, have suspended trading in shares of the club following the news of an impending debt-for-equity deal that would see Farhad Moshiri increase his stake.

The firm announced that they are seeking clarification from Everton, with the assistance of the Shareholders Association, "on the exact details of the club's proposal to create and issue new shares."

“The last traded price we matched buyer and seller at is £3,500 per share," said Neil Blankstone, Director of Blankstone Sington. "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.”

A statement read further: "Until further information has been attained about the deal, Blankstone Sington has suspended all attempts to match willing buyers and sellers for shares in the Company."

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

Reader Comments (16)

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Paul Hewitt
1 Posted 24/12/2020 at 19:56:43
Is this good or bad?
Andy Riley
2 Posted 24/12/2020 at 20:43:01
I don't really know. I bought a single share about 14 years ago through this company and the price was £1,250. Shares in EFC are generally only bought and sold via matching sellers and buyers which this firm facilitates. In theory, if the current price is £3,500 then I suppose it's a decent profit but I'd sooner retain.

I think once a majority shareholder exceeds a certain percentage, they can force the minority shareholders to sell to them and the proposed share issue may put this into play?

Maybe Paul the Esk can explain further?

Paul Hewitt
3 Posted 24/12/2020 at 20:45:53
Maybe Usmonov is finally coming on board?
Brian Wilkinson
4 Posted 24/12/2020 at 21:24:26
Good luck trying to get those 5% shares off Bill.
Paul Hewitt
5 Posted 24/12/2020 at 21:26:29
If Moshiri buys 90% of the shares, then he can buy the other 10% and there is nothing anyone can do about it.
Chris Williams
6 Posted 24/12/2020 at 21:52:00
If he can find them, Paul.

I guess the purchase might be assumed, but I hope, at that share price, they can trace a few nice people who've inherited shares, and who've shoved them at the back of a drawer or something.

Don Alexander
7 Posted 24/12/2020 at 22:22:18
A good day to bury bad news? Merely asking coz I haven't a clue.
Derek Knox
8 Posted 25/12/2020 at 06:42:24
Paul @ 3, Usmanov? What position does he play in, midfield would be handy! :-)

Merry Xmas mate and to all ToffeeWebbers. Which I also extend to Lyndon and Michael, and thanks them for providing the platform which we all enjoy throughout the season.

We all don't always agree, but as long as there are no verbal fisticuffs, that's good because at the end of the day we all share a mutual love of Everton Football Club.

Derek Thomas
9 Posted 25/12/2020 at 08:44:47
35,000 shares @ £3,500 = £122.5M... not a lot in real terms. It will be interesting when the dust settles just how many shares there will be and at what price they are rated.

My guess is that there will be 100,000 shares at, at well, whatever price he thinks he can get away with, say £4,000 per share.

The new value of the Club will be then £400M... which makes a loan for Bramley-Moore Dock, covered by the new value of the Club... in theory.

Patrick McFarlane
10 Posted 25/12/2020 at 09:21:43
According to Paul the Esk's blog relating to the publication of Everton's latest set of accounts:

The club announced their intention to issue new shares to Farhad Moshiri through Blue Heaven Holdings Limited. The shares will represent up to £250 million reflecting his previous loans and his recent commitment to a further £50 million injection in November. As a result (including the November injection) at least £100 million will have been provided and up to £150 million of existing shareholder loans will be converted into shares. At a price of £3,000 a share Moshiri's shareholding in the club will increase to above 90% assuming he takes up the full placement offered. Moshiri continues to support the continued holdings of smaller shareholders and I am informed that intention will not change.

I would think that there is a legal technicality with the possibility of the 90% threshold being broken by Moshiri, therefore the Shareholder's Association is seeking clarification – that's my best guess at any rate.

Allen Rodgers
11 Posted 25/12/2020 at 16:11:04
The link to the shareholders website does not work for me but try this - - not that it tells you much.

Like Andy @2 I own one solitary share bought about 4 years ago for £2,000 incl. commission to Blankstones. Also like Andy I don't want to sell even for £4,000. I never expected it to show a profit anyway!

Members of the Shareholders Association may know more about the likely change in value following the new share issue. I would have thought it more likely to decrease slightly, at least until Bramley-Moore Dock receives planning approval.

Dale Self
12 Posted 25/12/2020 at 17:52:28
Nice clip and punchline, Patrick. I'll be visiting Paul's place soon. Looks like positioning for a move not the move itself.
David Israel
13 Posted 26/12/2020 at 19:58:18
I may be wrong, but I think the rule that makes it compulsory for someone that reaches 90% ownership of a company to bid for the remaining shares only applies to publicly-quoted companies, which is not our case.
Michael Kenrick
14 Posted 26/12/2020 at 23:14:11
David, I think we've had someone tell us that before when this came up, so I think you are right.

Also, I think in meetings with the Shareholders Association, Farhad may have promised them that he would not threaten the position of the small shareholders (or given them some reassurance at least).

Clive Rogers
15 Posted 31/12/2020 at 12:47:58
Just when I was thinking of investing a few million quid. Ah well.
Nick Armitage
16 Posted 04/01/2021 at 22:24:07
David, 13, that's correct. There is no legal obligation to bid or sell, the company is privately held and the shareholders can do what they want with regards to ownership.

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