ALK Capital or Farnell/Elkashashy takeover

[Steve-Harpers-perm]

Is anything looking imminent in ways of completion?

[mybloodisclaret]

Is anything looking imminent in ways of completion?

Only a guess, and I don't know the veracity of any of the information, but if Pace is over from the states and looking at property in Rossendale Valley you wouldn't expect it to be too far off. Would be reasonable to imagine that he is here to at least attend a meeting with MG and other board members.

[KRBFC]

Is anything looking imminent in ways of completion?

With the Epyptian guy waiting for PL approval (according to Boden) you would assume that’s the final hurdle.

[Steve-Harpers-perm]

Yep though with the same paper now today saying the American is house hunting locally would lead us to believe he must be also confident of reaching an agreement. Hopefully we won’t be left waiting for weeks or months for it to be brought to a conclusion.

[jtv]

With the Epyptian guy waiting for PL approval (according to Boden) you would assume that’s the final hurdle.

If this is true, how are ALK still in with a chance?

[NewClaret]

I know nothing, well nothing I’m able to post on here although I’ve spent hours on this since the Elkashashy/Farnell story came out last week. I do have a lot of information now but I can’t share.

As for the like, it was more about getting pace into the team.

All I would say, from what I know or think I know, is that I would prefer the ALK bid although I’ve no idea where the money is coming from in either case.

Thanks CT. Appreciate the reply.

Information all bad or mixed?

Think we’ve all drawn the conclusion that ALK are the better bid, but it’s hard to form a conclusion when we know so little about about where the money is coming from in either bid.

[MACCA]

If this is true, how are ALK still in with a chance?

Boden has backed both hordes in a 2 horse race

He is still waiting for his first real piece of breaking news

[boatshed bill]

Please can someone explain this:
What happens to the other shareholders? Do they get bought out too?

[kentonclaret]

I would have hoped that establishing a legitimate source for the funding of any new prospective investor would have been one of the first priorities.

Otherwise, we could be talking to the Brinks-mat bullion robbers or a group of money launderers.

[KRBFC]

If this is true, how are ALK still in with a chance?

Good question, Boden said he spoke to the Farnell/Egyptian lot on the phone and that’s what he reported.

[Paul Waine]

I would have hoped that establishing a legitimate source for the funding of any new prospective investor would have been one of the first priorities.

Otherwise, we could be talking to the Brinks-mat bullion robbers or a group of money launderers.

I'd expect the club did establish who they were speaking with...and how they would fund their plans to buy the club.... and be capable of passing the ODT.

Banks, lawyers and accountants (and I'd expect other professions) all have a duty to "known their customer" and take steps to ensure they aren't dealing with a money launderer. Banks will get involved in the sale and purchase of the club when payment changes hands through the banks. Lawyers are, of course, involved in the "legals" of the transaction - and, a lawyer is involved as one of the prospective buyers. Accountants are most likely involved on Burnley's side in the presentation of the financial information in respect of the club and other accountants will represent the prospective buyers in the due diligence of the financial data. I'd hope, though wouldn't swear it is the case, that the ODT also includes a review of the source of funds (maybe it didn't in earlier days).

[Paul Waine]

Please can someone explain this:
What happens to the other shareholders? Do they get bought out too?

I'm not a shareholder. I'd assume that a new owner would wish to own 100% of the shares, though this is my "blind" assumption. I don't know if there are any legal/formal rules with regards to BFC shares. Maybe you could ask the company secretary what the situation would be.

[aggi]

Please can someone explain this:
What happens to the other shareholders? Do they get bought out too?

I'd imagine they'd probably try and buy out the major shareholders for a couple of reasons.

Minority shareholders can still disrupt things through exercising the various rights they have. Not generally enough to change the path but enough to be awkward.

If the intention is to eventually make a profit when selling the club then you want as many shares as possible so that you make the profit rather than other shareholders.

Saying that, I can't imagine they'll bother with all the small shareholders. They're pretty immaterial.

[ClaretTony]

With the Epyptian guy waiting for PL approval (according to Boden) you would assume that’s the final hurdle.

I’m told that is not the case. No deal struck with anyone as yet and therefore nothing has gone to the PL for approval.

[bfcmik]

I'd imagine they'd probably try and buy out the major shareholders for a couple of reasons.

Minority shareholders can still disrupt things through exercising the various rights they have. Not generally enough to change the path but enough to be awkward.

As I understand it only Mike G and John B have enough shares to be awkward.
Everyone else has too few to demand a board meeting or even to have items inserted on the agenda for a scheduled board meeting. Nor does anyone else have enough shares to force an AGM.

[superdimitri]

Not sure what to believe these days. Boden tweeting Pace is looking at local property: https://mobile.twitter.com/bodenknights ... 8766907392

For the long term I certainly like the idea of ALK more. Especially if their scouting tech works well.

[Grumps]

Not sure what to believe these days. Boden tweeting Pace is looking at local property: https://mobile.twitter.com/bodenknights ... 8766907392

For the long term I certainly like the idea of ALK more. Especially if their scouting tech works well.

He also reported that the other bid was just awaiting PL consent.
I think we will either win lose or draw tomorrow.... I have the same chance of being right as Boden does on the takeover.

[Top Claret]

Done deal I have just past a train of Camels heading towards the Turf

[dsr]

Done deal I have just past a train of Camels heading towards the Turf

So all we need do is find out which party is a heavy smoker ...

[Paul Waine]

As I understand it only Mike G and John B have enough shares to be awkward.
Everyone else has too few to demand a board meeting or even to have items inserted on the agenda for a scheduled board meeting. Nor does anyone else have enough shares to force an AGM.

This mb will get even more confused. If we have new owners then (unless it's part of the deal they do) MG and JB will have sold all their shares to the new owners, so their only "awkwardness" will be in agreeing the terms of the sale of the club, including the price. I'd expect the same offer to buy their shares to be available to all shareholders. I can't see why any existing small shareholders would want to retain their shares, unless they are also ready to put new money into the club. Of course, I get the sentimental "I'm a Burnley fan" small shareholder argument - perhaps those shares could be converted to a new class "I'm a fan - non-voting and non-participating" shares. I'm not sure how many would pass up the chance to sell their share(s) for maybe something north of £1,000 per share - if the reported potential price to buy the club is anywhere near accurate.

UTC

[NewClaret]

I’m told that is not the case. No deal struck with anyone as yet and therefore nothing has gone to the PL for approval.

Interesting information, CT. And much more likely than the rumours that a SPA has been signed (in which case ALK would be out of the running). You do question though, in that case, why they are calling Boden and telling blatant lies? It makes me even more distrusting of them.

Perhaps the obvious answer being that the club has asked the PL to run their tests in advance of considering their offer? Not sure if that is even possible/in line with protocols.

[Paul Waine]

Not sure what to believe these days. Boden tweeting Pace is looking at local property: https://mobile.twitter.com/bodenknights ... 8766907392

For the long term I certainly like the idea of ALK more. Especially if their scouting tech works well.

I've no idea why Boden would tweet that Alan Pace is looking for property. Is it a requirement that an owner lives in the area? I doubt Boden is accurate, if for no other reasons than I'm sure Pace already knows there are many good hotels in the area. Of course, if he's really serious about buying Burnley FC, he'd be looking for a home in Cheshire, wouldn't he?

I favour the idea of ALK: we know a little of Alan Pace's background/history. As an investment banker he will know many "wealthy" aka "high net worth" individuals. Many of these guys will have seen how Liverpool's and ManU's owners have made money through their club ownership. Many may want to have a little part of their investment portfolio following a shared "me too" strategy with another Premier League football club in the same region of England.

UTC

[Juan Tanamera]

I'd much prefer a more local investment if possible.
Maybe a company that once sponsored part of our kit a few years back?

[dushanbe]

I'd much prefer a more local investment if possible.
Maybe a company that once sponsored part of our kit a few years back?

Indeed Juan.

[Quickenthetempo]

I'd much prefer a more local investment if possible.
Maybe a company that once sponsored part of our kit a few years back?

The speed of which Bene n hot flies out at the Turf, they might be considering buying us and turning the cricket club into their distillery.

[Grumps]

I'd much prefer a more local investment if possible.
Maybe a company that once sponsored part of our kit a few years back?

I think if that was going to happen it would have been a few weeks ago after the floatation

[Charlton Boy]

.

[scouseclaret]

Please can someone explain this:
What happens to the other shareholders? Do they get bought out too?

For quoted companies, once an acquirer achieves a controlling interest, they are obliged to offer to buy all remaining shares on the same terms.

I think similar rules apply to private companies but I’m not 100% sure.

[J50]

I can't see why any existing small shareholders would want to retain their shares, unless they are also ready to put new money into the club. Of course, I get the sentimental "I'm a Burnley fan" small shareholder argument - perhaps those shares could be converted to a new class "I'm a fan - non-voting and non-participating" shares. I'm not sure how many would pass up the chance to sell their share(s) for maybe something north of £1,000 per share - if the reported potential price to buy the club is anywhere near accurate.

UTC

The best reason for having shares is the ability to buy a ticket for any away match. So long as you are quick off the mark on the phone. There are a limited number available from the club for shareholders. So for example our early days in the PL saw some games sell out very quickly; us shareholders and non-ST holders could get a ticket...

[Paul Waine]

The best reason for having shares is the ability to buy a ticket for any away match. So long as you are quick off the mark on the phone. There are a limited number available from the club for shareholders. So for example our early days in the PL saw some games sell out very quickly; us shareholders and non-ST holders could get a ticket...

Yes, good reason, J50. Not being a shareholder I'd forgotten that advantage. Maybe that would be part of a new "I'm a fan, but can't get to home games enough to justify a ST" scheme. Foundation members also get the opportunity to enter a "telephone race" to get opportunity to buy a limited number of away tickets.

UTC

[Herts Clarets]

Foundation Membership has one benefit for me and that is the ability to get away tickets. On the few occasions that failed, a kindly Burnley fan i knew was always willing to obtain a ticket on my behalf. Sadly that fan is no longer with us so i don't have that option now. I think the only game i wanted to attend that i have not managed to get a ticket for was Spurs away last season.

[JohnDearyMe]

Only found out Farnell myself at the same time as everyone on here. It's not difficult to join the dots regards the rest of it and Dubai. That said. I'm not convinced by that bid. ALK looks a lot stronger long term.

Thanks, that's interesting.

I suppose my next question would be why is the Dubai state attempting to take over Burnley whilst using such questionable and controversial frontmen?

[aggi]

For quoted companies, once an acquirer achieves a controlling interest, they are obliged to offer to buy all remaining shares on the same terms.

I think similar rules apply to private companies but I’m not 100% sure.

I think 90% is the magic number there (for both public and private) and it can work both ways "sell out" provisions which force the person acquiring to buy all the shares and "squeeze out" provisions where the person acquiring can force the purchase of shares.

I'm pretty rusty on it though so may be missing some nuances.

[aggi]

As I understand it only Mike G and John B have enough shares to be awkward.
Everyone else has too few to demand a board meeting or even to have items inserted on the agenda for a scheduled board meeting. Nor does anyone else have enough shares to force an AGM.

There's ~ 16% spread between the Nelsons, Holts, Floods, Kilby and Crabb so enough to collectively cause some awkwardness but nothing major.

I updated the list of shareholders in Google sheets to reflect the December 2019 position if anyone is interested.
https://docs.google.com/spreadsheets/d/ ... sp=sharing

[Dark Cloud]

Would be interesting to know what Barry Kilby's private thoughts are on all this tbh.

[ClaretAndJew]

Would be interesting to know what Barry Kilby's private thoughts are on all this tbh.

"Take the money and run"

[Dark Cloud]

"Take the money and run"

Maybe, but he's been brilliant for the club and it really has been a labour of love for him and is clearly very dear to his heart. I'm sure he must be thinking, the money will come in handy, but a big part of him may be as worried as the rest of us in case we get sold down the river and I'm convinced he wouldn't want to see that.

[Siddo]

Thanks CT. Appreciate the reply.

Information all bad or mixed?

Think we’ve all drawn the conclusion that ALK are the better bid, but it’s hard to form a conclusion when we know so little about about where the money is coming from in either bid.

Just as a matter of interest, how have you drawn the conclusion that ALK is the better bid?

[ClaretTony]

Thanks, that's interesting.

I suppose my next question would be why is the Dubai state attempting to take over Burnley whilst using such questionable and controversial frontmen?

That JohnDearyMe is a very good question for which there appears to be little answer. Questionable and controversial without a doubt.

[ClaretTony]

Just as a matter of interest, how have you drawn the conclusion that ALK is the better bid?

I probably shouldn't have used the word bid because I don't know what either party, or indeed other parties, might have offered. I was basing it on the knowledge I've picked up regarding the potential suitability of the two apparent bidders.

[Steddyman]

https://www.lancs.live/sport/football/b ... k-19227355

[ClaretTony]

Would be interesting to know what Barry Kilby's private thoughts are on all this tbh.

I can tell you - Barry's thoughts are ensuring the best is done for Burnley Football Club

[ClaretTony]

https://www.lancs.live/sport/football/b ... k-19227355

Absolutely nothing in there that we didn't all know over a week ago

[claretonthecoast1882]

Boden would be slaughtered on here had he wrote that lancs live article

[ClaretTony]

Boden would be slaughtered on here had he wrote that lancs live article

He would

[dibraidio]

In the accounts for 2018 Mike Garlick was declared as having 60,308 shares. The share capital was given as 122,478 shares of £1 each.

Does that mean that he's being offered roughly 180 million at 3000 per share?

Presumably that means the other shares are only worth 1 pound each still.

[Chester Perry]

I can tell you - Barry's thoughts are ensuring the best is done for Burnley Football Club

'twas ever thus

[Grumps]

Boden would be slaughtered on here had he wrote that lancs live article

Agreed, but knowing how many people continue to ask what's going on, it keeps them updated... Which amounts to nothing
Boden was laughed at for basically saying both bids would win......

It would probably be best if this subject was put on the banned list until something concrete was said by any of the parties

[ClaretTony]

Someone wanted to put up a similar article on UTC this week that said absolutely nothing new - I declined it.

[superdimitri]

I think local investment would have been on the cards long ago if was possible. I think the club already has the richest locals who'll back us.
Sadly P3 Computers didn't turn into the next a Dell or HP and even PSV Eindhoven are strapped for cash despite local investment and loans by Philips!
If you mean local as the UK as a whole I don't think there's any interest at all. It's no coincidence most clubs are backed by foreigners.
As much as I hate it clubs like Chelsea have been spending the world's best money, to compete you need much more then just a little here and there.
Unless it's worth giving the likes of Branson, Ashley or Ecclestone a go. Now that's a scary thought!

Funny fact: When Ecclestone bought part of QPR he was initially tricked by Flavio Briatore that he was buying a Pizza chain. He had no clue that QPR was even a football club.