Club Announcement To Stock Exchange

[Rackybear]

http://www.tottenhamhotspur.com/news/articles/clubannouncement210809.html

The following has been issued to the Stock Exchange today (Friday, August 21).
Tottenham Hotspur plc
("Tottenham Hotspur" or "the Company")
Placing of new shares to raise £15 million
Tottenham Hotspur (AIM: TTNM.L), announces a placing (the "Placing") of 30 million new ordinary shares of 5p each (the "New Shares"). The New Shares have been placed for cash by Seymour Pierce Limited with new and existing shareholders ("the Placees") at 50p per share and have raised £15 million before expenses. The new funds represent the first stage of capital which is required for the development of the Company's proposed new stadium development, specifically the submission of a full planning proposal later this year.
During the past two years the Company has engaged a full time team of experts and consultants to progress the development of the proposed new stadium. The Company is making solid progress with regard to submitting a full planning application which it expects to submit later this year.
The professional costs to advance the project to a position where the Company can submit a full application for planning will be circa £15 million. The Directors are keen to ensure this stage is reached at no detriment to the core operations of the business, which are subject to both the current economic downturn and the pressure on underlying costs which result from pushing for success in such a hugely competitive business.
The Company has in the past paid ordinary dividends but whilst it undergoes its current capital projects, including the new training facilities, it is unlikely that any ordinary dividends will be paid.
In order to raise the required £15 million, the Company's major shareholder ENIC, has subscribed for the 27.8 million New Shares not taken up by institutional placees in the Placing.
The New Shares, will rank pari passu with existing Ordinary Shares. Following this placing the Company will have 122,799,073 Ordinary Shares in issue and 213,862,111 shares on a fully diluted basis.

----------------------------------------------------

:shrug:

 

[robofan]

http://www.tottenhamhotspur.com/news/articles/clubannouncement210809.html

The following has been issued to the Stock Exchange today (Friday, August 21).
Tottenham Hotspur plc
("Tottenham Hotspur" or "the Company")
Placing of new shares to raise £15 million
Tottenham Hotspur (AIM: TTNM.L), announces a placing (the "Placing") of 30 million new ordinary shares of 5p each (the "New Shares"). The New Shares have been placed for cash by Seymour Pierce Limited with new and existing shareholders ("the Placees") at 50p per share and have raised £15 million before expenses. The new funds represent the first stage of capital which is required for the development of the Company's proposed new stadium development, specifically the submission of a full planning proposal later this year.
During the past two years the Company has engaged a full time team of experts and consultants to progress the development of the proposed new stadium. The Company is making solid progress with regard to submitting a full planning application which it expects to submit later this year.
The professional costs to advance the project to a position where the Company can submit a full application for planning will be circa £15 million. The Directors are keen to ensure this stage is reached at no detriment to the core operations of the business, which are subject to both the current economic downturn and the pressure on underlying costs which result from pushing for success in such a hugely competitive business.
The Company has in the past paid ordinary dividends but whilst it undergoes its current capital projects, including the new training facilities, it is unlikely that any ordinary dividends will be paid.
In order to raise the required £15 million, the Company's major shareholder ENIC, has subscribed for the 27.8 million New Shares not taken up by institutional placees in the Placing.
The New Shares, will rank pari passu with existing Ordinary Shares. Following this placing the Company will have 122,799,073 Ordinary Shares in issue and 213,862,111 shares on a fully diluted basis.

----------------------------------------------------

:shrug:

masterstroke :wink:

 

[Rupstoh]

It's already been posted Rackybear.

 

[Kyras]

So basically, they don't want us to tap into transfer funds and stuff and this is a share issue to cover costs? Kinda like quantative easing I suppose.

 

[MR_BEN]

ordinary shares of 5p value?

i could have sworn all orginary shares have a value of £1

 

[Kendall]

These are new shares.

 

[Dan Ashcroft]

If I understand correctly, ENIC will pay £30m to themselves to increase their ownership of the club (from about 80% to about 90%). Instead of paying other shareholders for their shares, the £30m will go straight into the stadium fund.

It's the same as they did in about 2004 when they increased their share in the club from 29% to something around 65% yet kept all the cash.

 

[Chris12345]

I'm no stockmarkettypedude, but that sounds highly dubious :lol:

 

[Kyras]

I'm no stockmarkettypedude, but that sounds highly dubious :lol:

Meh, I trust Levy. If it was Mubarak or the Glazers or that, I'd be sceptical, and I'm sure by announcing it to the stock exchange then there's no problem.

 

[Dan Ashcroft]

I'm no stockmarkettypedude, but that sounds highly dubious :lol:

It's legal, because theoretically all the shareholders have the same opportunity to take advantage of the new issue. In reality it only benefits the larger shareholders. Two lesser directors, Howard Shore and Paul Viner, resigned over the ethics of it back in 2004.

 

[Lilbaz]

http://www.tottenhamhotspur.com/news/articles/clubannouncement210809.html

The following has been issued to the Stock Exchange today (Friday, August 21).
Tottenham Hotspur plc
("Tottenham Hotspur" or "the Company")
Placing of new shares to raise £15 million
Tottenham Hotspur (AIM: TTNM.L), announces a placing (the "Placing") of 30 million new ordinary shares of 5p each (the "New Shares"). The New Shares have been placed for cash by Seymour Pierce Limited with new and existing shareholders ("the Placees") at 50p per share and have raised £15 million before expenses. The new funds represent the first stage of capital which is required for the development of the Company's proposed new stadium development, specifically the submission of a full planning proposal later this year.
During the past two years the Company has engaged a full time team of experts and consultants to progress the development of the proposed new stadium. The Company is making solid progress with regard to submitting a full planning application which it expects to submit later this year.
The professional costs to advance the project to a position where the Company can submit a full application for planning will be circa £15 million. The Directors are keen to ensure this stage is reached at no detriment to the core operations of the business, which are subject to both the current economic downturn and the pressure on underlying costs which result from pushing for success in such a hugely competitive business.
The Company has in the past paid ordinary dividends but whilst it undergoes its current capital projects, including the new training facilities, it is unlikely that any ordinary dividends will be paid.
In order to raise the required £15 million, the Company's major shareholder ENIC, has subscribed for the 27.8 million New Shares not taken up by institutional placees in the Placing.
The New Shares, will rank pari passu with existing Ordinary Shares. Following this placing the Company will have 122,799,073 Ordinary Shares in issue and 213,862,111 shares on a fully diluted basis.

----------------------------------------------------

:shrug:

How much do we need to raise to put in for the planning proposal (i take it that this is planning permission?) and when can we expect the building work to start?

 

[phil]

ordinary shares of 5p value?

i could have sworn all orginary shares have a value of £1

No, shares can be of any value. Most people when thet set up 'small' companies choose a notional share value of £1 but it is not a requirement. Very few of the FTSE companies have a £1 nominal value. I have one holding whose nominal value is 64.7p.

If I understand correctly, ENIC will pay £30m to themselves to increase their ownership of the club (from about 80% to about 90%). Instead of paying other shareholders for their shares, the £30m will go straight into the stadium fund.

It's the same as they did in about 2004 when they increased their share in the club from 29% to something around 65% yet kept all the cash.

I think it is £15m rather than £30m and ENIC haven't taken up all the shares. Some have been placed with the market.

In 2004, it was not a placing (issuing of new shares) but the issuing of covertible Preference Shares at £250 per share. Unlike this placing, all shareholders were offered Preference Shares on the basis of one Preference Share for every 500 ordinary shares held.

ENIC were very clever here by underwriting the issue themselves and by coming up with the 500:1 ratio. If, for example, a small shareholder had 950 shares, they were only entitled to purchase 1 Preference Share. A combination of shareholders not taking up their entitlement and the non-qualifying parts of holdings allowed ENIC to increase their percentage holding so that they had a majority of the ordinary shares (from memory I think they went from 42% to 67%).

BTW the Preference Shares were an excellent investment as, after 3 years, they converted to 1562 ordinary shares which equated to a 400%+ profit for those who took up their entitlement. :hump:

I'm no stockmarkettypedude, but that sounds highly dubious :lol:

No, fairly common way of raising additional fundimg.

It's legal, because theoretically all the shareholders have the same opportunity to take advantage of the new issue. In reality it only benefits the larger shareholders. Two lesser directors, Howard Shore and Paul Viner, resigned over the ethics of it back in 2004.

No, this was a placing and there was no opportunity for ordinary shareholders to particpate. The market was obviously not unhappy with the placing as the shares have risen 10% in the past two days.

 

[robofan]

No, shares can be of any value. Most people when thet set up 'small' companies choose a notional share value of £1 but it is not a requirement. Very few of the FTSE companies have a £1 nominal value. I have one holding whose nominal value is 64.7p.



I think it is £15m rather than £30m and ENIC haven't taken up all the shares. Some have been placed with the market.

In 2004, it was not a placing (issuing of new shares) but the issuing of covertible Preference Shares at £250 per share. Unlike this placing, all shareholders were offered Preference Shares on the basis of one Preference Share for every 500 ordinary shares held.

ENIC were very clever here by underwriting the issue themselves and by coming up with the 500:1 ratio. If, for example, a small shareholder had 950 shares, they were only entitled to purchase 1 Preference Share. A combination of shareholders not taking up their entitlement and the non-qualifying parts of holdings allowed ENIC to increase their percentage holding so that they had a majority of the ordinary shares (from memory I think they went from 42% to 67%).

BTW the Preference Shares were an excellent investment as, after 3 years, they converted to 1562 ordinary shares which equated to a 400%+ profit for those who took up their entitlement. :hump:



No, fairly common way of raising additional fundimg.



No, this was a placing and there was no opportunity for ordinary shareholders to particpate. The market was obviously not unhappy with the placing as the shares have risen 10% in the past two days.

top evaluation there sir, a man after my own heart :clap:

 

[FITZ]

Does all this mean that we're going to start seeing the start of stadium build during this season?

 

[MR_BEN]

no. - if they arent submitting planning permission till near the end of the year.. it probably wont be approved until near the end of the season. i'd expect to see some demolition work maybe next summer?

 

[BringBack_leGin]

No, shares can be of any value. Most people when thet set up 'small' companies choose a notional share value of £1 but it is not a requirement. Very few of the FTSE companies have a £1 nominal value. I have one holding whose nominal value is 64.7p.



I think it is £15m rather than £30m and ENIC haven't taken up all the shares. Some have been placed with the market.

In 2004, it was not a placing (issuing of new shares) but the issuing of covertible Preference Shares at £250 per share. Unlike this placing, all shareholders were offered Preference Shares on the basis of one Preference Share for every 500 ordinary shares held.

ENIC were very clever here by underwriting the issue themselves and by coming up with the 500:1 ratio. If, for example, a small shareholder had 950 shares, they were only entitled to purchase 1 Preference Share. A combination of shareholders not taking up their entitlement and the non-qualifying parts of holdings allowed ENIC to increase their percentage holding so that they had a majority of the ordinary shares (from memory I think they went from 42% to 67%).

BTW the Preference Shares were an excellent investment as, after 3 years, they converted to 1562 ordinary shares which equated to a 400%+ profit for those who took up their entitlement. :hump:



No, fairly common way of raising additional fundimg.



No, this was a placing and there was no opportunity for ordinary shareholders to particpate. The market was obviously not unhappy with the placing as the shares have risen 10% in the past two days.

Briliant summary. With all my pretences of going into Public Company Law, I'd have done a tenth as good as you have my man. Repped!