Mo's document-up to 1.2m? and Mos Clarification

[TheLegalBeagle]

just read the document and looks great. just one question if anyone can answer it - when is it likely mo can take charge ??? may june ???

 

Dear Stevie,

 

In an ideal world end of May / beginning of June to allow the summer to sort things out pre-season. The longer into the summer break, the harder the task before us with the new season imminent.

 

It is in the hands of the board (who could recommend the bid to the shareholders now) and then the shareholders (at the EGM).

 

The board have it within their gift to expedite the process by supporting the bid.

 

Kind Regards

[chunky]

Dear All,

 

I have seen the thread re "up to" £1.2M.

 

Apologies for an unfortunate turn of phrase. This is an editorial oversight on our part - a result of too many cooks spoiling the broth.

 

The bid is and always has been £1.2M for 51% of the new shares at £5 per share as per the Articles.

 

I hope this clarifies any confusion that has arisen with the brochure.

 

As for the board's understanding, it has always been £1.2M for 51% and so no confusion there.

 

For want of stating the obvious, the bid is and always has been subject to due diligence and we await bid approval and then the opening of the books to our accountants.

 

I am happy to clarify any other aspects of the bid document - which is a summary / overview.

 

Kind regards.

 

*** one of the main points that the document was supposed to clarify gets misprinted...Unbelievable!!!

[Valiant Haze]

Just having a look through Mo's new glossy document, available here. I think everyone, pro or anti bid, should have a read through if they havent done so.

 

http://www.mochaudry.co.uk/wp-content/themes/mo-chaudry/downloads/Documents/MoChaudryPortValePlan.pdf

 

One question. Can someone from B&G/Mo clarify what the bid means by "A Cash investment of up to 1.2m"

 

This "up to" point has gone back and forth a few times and it has me confused. I head it in mentioned in the jacksongate tapes when Jackson claims that mo's bid was for only "up to" 1.2m, only for Jackson to get shot down by the B&G protestors, who swore it was the full 1.2m cash (and even offered to call Mo there and then to ask him).

 

Now this document comes out and it appears jackson was telling something like the truth on this one (hey, maybe a first for everything).

 

So, what is "up to" 1.2m mean? Does it depend on how many existing shareholders decide to sell their shares to Mo? Ie, Will Mo just buy enough new equity to get control?

 

Genuine question.

 

Dear All,

 

I have seen the thread re "up to" £1.2M.

 

Apologies for an unfortunate turn of phrase. This is an editorial oversight on our part - a result of too many cooks spoiling the broth.

 

The bid is and always has been £1.2M for 51% of the new shares at £5 per share as per the Articles.

 

I hope this clarifies any confusion that has arisen with the brochure.

 

As for the board's understanding, it has always been £1.2M for 51% and so no confusion there.

 

For want of stating the obvious, the bid is and always has been subject to due diligence and we await bid approval and then the opening of the books to our accountants.

 

I am happy to clarify any other aspects of the bid document - which is a summary / overview.

 

Kind regards.

 

Why should existing SHs sell? I would be inclined to purchase more.

 

I tried to explain a few posts north of this one but prob wasnt all that clear. In brief - No voting rights, will not see dividends as they will go first to service the debt, and shareholders will be diluted in the event of a sale.

 

Anyway, this is a financial answer. There are of course other reasons for owning shares in vale.

 

I have to head out now, but will try to answer in more depth later. Unless I have too many beers - Its very sunny here today! :)

I'm worried you may have missed LB's response to your opening post, so i thought i'd again bring it to your attention to allow you the chance to respond.

[zander]

im more worried about whats in the books,im shore thier hiding something and will only sell to someone that will help to cover thier tracks.

just a got feeling mind

[Valiant Haze]

Just having a look through Mo's new glossy document, available here. I think everyone, pro or anti bid, should have a read through if they havent done so.

 

http://www.mochaudry.co.uk/wp-content/themes/mo-chaudry/downloads/Documents/MoChaudryPortValePlan.pdf

 

One question. Can someone from B&G/Mo clarify what the bid means by "A Cash investment of up to 1.2m"

 

This "up to" point has gone back and forth a few times and it has me confused. I head it in mentioned in the jacksongate tapes when Jackson claims that mo's bid was for only "up to" 1.2m, only for Jackson to get shot down by the B&G protestors, who swore it was the full 1.2m cash (and even offered to call Mo there and then to ask him).

 

Now this document comes out and it appears jackson was telling something like the truth on this one (hey, maybe a first for everything).

 

So, what is "up to" 1.2m mean? Does it depend on how many existing shareholders decide to sell their shares to Mo? Ie, Will Mo just buy enough new equity to get control?

 

Genuine question.

 

Dear All,

 

I have seen the thread re "up to" £1.2M.

 

Apologies for an unfortunate turn of phrase. This is an editorial oversight on our part - a result of too many cooks spoiling the broth.

 

The bid is and always has been £1.2M for 51% of the new shares at £5 per share as per the Articles.

 

I hope this clarifies any confusion that has arisen with the brochure.

 

As for the board's understanding, it has always been £1.2M for 51% and so no confusion there.

 

For want of stating the obvious, the bid is and always has been subject to due diligence and we await bid approval and then the opening of the books to our accountants.

 

I am happy to clarify any other aspects of the bid document - which is a summary / overview.

 

Kind regards.

 

 

LB, would it be possible for you to amend the said oversight, on Mo's website. This would help answer any doubt's on the said issue.

 

I would like to point out that I am currently totally for MC's bid, but I'd appreciate any common concerns of supporters to be answered in print.

[TheLegalBeagle]

LB, would it be possible for you to amend the said oversight, on Mo's website. This would help answer any doubt's on the said issue.

 

I would like to point out that I am currently totally for MC's bid, but I'd appreciate any common concerns of supporters to be answered in print.

 

Dear VH,

 

Will do.

 

The NLV letter to the shareholders will clarify the point as well.

 

Regards

[Fosse69]

It being a better deal - that's not obviously true though SH. The council loan is not convertible to equity. This optionality is added on by Mo as part of the deal's structure. Although he doesn't say at what strike price the debt-to-equity conversion can happen, lets just assume it will be 5 quid a share. Thus, any upside in stock value will belong almost exclusively to Mo. If someone wants to buy the club and pay a higher price per share, Mo will just exercise his option to convert some of the debt at 5 quid, diluting down the minority shareholders in the process. At the same time, Mo can take profits out of the company through interest, avoiding paying the same to the common shareholders.

 

All this means of course that each and every shareholder, acting rationally, should accept Mo's offer of 5 quid a share (in my honest opinion).

 

But then does that means he wont actually inject any new equity at all, as he wont need to, in order to get control? Does "up to 1.2m" in new equity actually mean 1.2m only if nobody sells , and as low as zero if 51% of the people decide to sell?

 

Thats the question I would like answered.

 

My shares are worth nothing, just a voting slip, how can I lose out?

[NEV]

were was the photo taken the one, on the last page there are a lot of people from around the would laughing and looking happy .it was not taken at the vale there are no yellow seats it this some sore of gimick

[NWLV]

 

£1.2M for 51% of new shares. The balance initially directors loan at preferential rate (ie no interest). The extent of Mo's investment and the depth of his pockets during his tenure is for him alone. Phase 1 of the investment as per the business plan is up to £5M to compliment an improvement in the business as a whole - not simply to prop up losses and poor business practice and on and off the

 

Kind regards

Does this mean that Mo will invest £5m or say £5k as it says 'up to'======

[AVIM]

Dear All,

 

I have seen the thread re "up to" £1.2M.

 

Apologies for an unfortunate turn of phrase. This is an editorial oversight on our part - a result of too many cooks spoiling the broth.

 

The bid is and always has been £1.2M for 51% of the new shares at £5 per share as per the Articles.

 

I hope this clarifies any confusion that has arisen with the brochure.

 

As for the board's understanding, it has always been £1.2M for 51% and so no confusion there.

 

For want of stating the obvious, the bid is and always has been subject to due diligence and we await bid approval and then the opening of the books to our accountants.

 

I am happy to clarify any other aspects of the bid document - which is a summary / overview.

 

Kind regards.

 

Just catching up with this thread now.

 

Thanks for clarifying that the current version of the bid doc is incorrect LB, I hope you manage to get it updated before too many hit the printers!

 

So, as I understand it. If 25% (300k) of the shareholders decide to sell to Mo, he will spend 1.5m on shares (1.2m into the club, 300k to existing shareholders) - taking his holding to 62.5%.

 

I am sure understand why I see this issue as being so crucial. The cash injection into the club is badly needed - all 1.2m of it!

[AVIM]

Where are you, Buccament Bay?:cool:

 

I just googled it - I wish!

http://www.buccamentbay.com/

 

I live in the south of france now. Kinda wish I had chosen a different username.... Still, it was very sunny. Just a shame there is only crap lager.

[AVIM]

I don't know who tyou are, but take your agenda and stick it right up your ****ter

 

Nice. You are a sweetie.

 

FYI, its possible to be in favour of Mo's bid, without being blindly in favour of it. In fact, I would argue that is a healthy and sensible pov.

[Jimmy]

Nice. You are a sweetie.

 

FYI, its possible to be in favour of Mo's bid, without being blindly in favour of it. In fact, I would argue that is a healthy and sensible pov.

 

Maybe you should change your username to 'French Riviera Vale Fan'........Its simple ask a Mod.

[AVIM]

To be honest, I very much suspect that the vast majority of the 900+ shareholders saw their investment in Vale as a donation rather than anything that was likely to produce a financial return.

 

Agreed. But I wouldn't blame people if they decide to sell at 5 quid. From a pure financial perspective, I dont think the price will get any better further down the line. Some people put a lot of their net worth into V2001 shares, and I am very grateful that they did. To get their money back now, without damaging the club in any way, seems like a nice result all round.

[AVIM]

Maybe you should change your username to 'French Riviera Vale Fan'........Its simple ask a Mod.

 

Ahh, I assumed it wasn't possible. I will seek out a Mod!