Dick Knight Share Dispute - Unnamed Director offer £0.01 per share

[Goldstone1976]

I'm obviously missing something.

The thread appears to suggest that prior to offering shares for sale the seller has to 'offer' them to an existing shareholder/director. This poses a few questions:

1. If an offer is made, does it have to be accepted? For example if an offer were to be made at say .0001p/share would it have to accepted? If not what happens

2 In this situation, is it compulsory that the offer be referred to an independent valuer, even when it is know that the charges will exceed the value of the sale?

2. Does the act of offering shares to an existing shareholder mean that the condition has been satisfied, even if the offer is subsequently rejected?

3. Can the shares be offered and if the offer, due it being derisory, is rejected , can the shares be offered on the open market?

DK is required to let other existing shareholders know that he wishes to sell (some of) his shares. He does this by telling the club, who act as middle man (typically either the FD or the Company Secretary) and they inform the other shareholders. The other shareholders then have 28 days to decide whether they wish to make an offer. If the buying shareholder and the selling shareholder agree on a price, the deal is done. If they do not agree on a price, the club organises for the auditors to come in and independently value the shares. Whatever value they determine is then binding on the buyer and seller.

 

[CheeseRolls]

Usual load of speculation and half arsed theories. Let's get straight to the point. @dickknightsmum

messiah or very naughty boy ? Which is it ?

 

[glasfryn]

Perhaps it would have been a possibility had DK not been underhand! Sensible discussions may have taken place had DK approached the board with his idea but he chose not to, presumably because he had his reasons but to many those reasons seem to be based on marginalisation following TB's takeover. Fact is that DK couldn't build the stadium and TB could. Get over it!

you cannot marginalize saving our club, DK could have built a stadium but it would have been smaller more compact, less people involved ect.
Underhand blimey now theres a word to conjure with
the man is an Albion legend
please do not diss him

 

[symyjym]

Perhaps it would have been a possibility had DK not been underhand! Sensible discussions may have taken place had DK approached the board with his idea but he chose not to, presumably because he had his reasons but to many those reasons seem to be based on marginalisation following TB's takeover. Fact is that DK couldn't build the stadium and TB could. Get over it!

Just a little disingenuous, everything was in place and Bloom did the easy bit.

 

[Buzzer]

Just a little disingenuous, everything was in place and Bloom did the easy bit.

Err...coughing up £100M was the easy bit? Who's being disingenuous?

 

[Not Andy Naylor]

Surely if 200+ people value the shares at £1 and one person values them at 1p, then a fair compromise would be to value them at around 99p.

There, that didn't take long, and didn't cost £450 an hour.

You may now proceed.

 

[glasfryn]

Err...coughing up £100M was the easy bit? Who's being disingenuous?

and you think he done that just because he was a fan
he is a businessman and generously ploughed money into the club,along with others, which if and when he sells he will get back if I had that sort of money I might have put it into the club unfortunately I don't
and if DK had not saved the club TB would have had nothing to invest in

 

[cjd]

Dick Knight and Lord Bracknell.......two old men, well past their prime.

One of them just likes to take on 'the big boys'....and one of them nearly did more damage to Brighton & Hove Albion than Bill Archer. Only Robbie Reinelt saved his skin on that one.

Shame to sully their reputations like this.

 

[The Camel]

What % of the total shareholding does Dick Knight own?

 

[The Merry Prankster]

First time I've not felt positively about Dick (yes I know).

 

[Ernest]

This. It's totally embarrassing.

It's funny isn't it - on Dick Knights watch, they had the buckets out (the 40 note fund) and our most expensive signing was paid for by Coca Cola. And yet all that time, NOT ONCE were any shares ever made available to the public as a means to raise money. Why not? I'd quite like to have had a handful of shares when Dick Knight was chairman, and I'm sure others would have too. Why didn't he make them available on his watch then?

All this bleating at the current board - it stinks of hypocrisy and is totally unfair.

Stop MOANING you could have had a BRICK (except the BRICKS didn't happen)

 

[LowerWesty]

DK is required to let other existing shareholders know that he wishes to sell (some of) his shares. He does this by telling the club, who act as middle man (typically either the FD or the Company Secretary) and they inform the other shareholders. The other shareholders then have 28 days to decide whether they wish to make an offer. If the buying shareholder and the selling shareholder agree on a price, the deal is done. If they do not agree on a price, the club organises for the auditors to come in and independently value the shares. Whatever value they determine is then binding on the buyer and seller.

Thanks for the info, it all makes sense now

 

[Buzzer]

Surely if 200+ people value the shares at £1 and one person values them at 1p, then a fair compromise would be to value them at around 99p.

There, that didn't take long, and didn't cost £450 an hour.

You may now proceed.

It doesn't work like that and you know that. DK can't piss around with the Articles of Association that he himself set up. I'll get 200 people together and make a bid of 0.5p per share shall I? We'll do the calculation based on that. I've got just as much right to dictate the price of the shares as the other 200 offering £1 i.e. none at all.

DK had no right hawking those shares out at £1 to fans before offering them to Board Members. He should have informed the Board then let them make their decision before offering them elsewhere. It's DK that has created this mess, deliberately raised fans' expectations, deliberately used fans loyalty as a weapon against the current Board.

 

[Goldstone1976]

Surely if 200+ people value the shares at £1 and one person values them at 1p, then a fair compromise would be to value them at around 99p.

There, that didn't take long, and didn't cost £450 an hour.

You may now proceed.

There is a question of how valid the respective parties' opinions are, which is awkward but relevant in the following way.

El Pres said in today's radio broadcast that his models value the club's shares at between 0p and 18p. My last model valued the club at 13p/share, with a range of +/- 10p.

Do you think the club has any duty of care to totally random members of the public when they are are offering to buy the shares? Imagine the scenes if it transpired that TB sold the club for 25p/share in the week following the fans buying them for £1! 25p/share would, according to both El Pres and me be a decent premium, but would involve a 75p/share loss for those fans who had bought at £1.

 

[symyjym]

Err...coughing up £100M was the easy bit? Who's being disingenuous?

You cannot compare the 12 years hard work that DK put in keeping the club afloat and the design of the stadium to someone who has got deep pockets and access to millions.

Without DK there would be no TB. If I had £150m and bought the club it would have only been for what was already setup and ready to go, not through my hard work.

 

[keaton]

Presumably the club would pay the other 75% of the legal fees.

So for the sake of pissing of Dick and small amount of shares the highest paid directors in the Championship can spend some of the clubs money on lawyers while the playing side makes savings. Wicked.

 

[Buzzer]

You cannot compare the 12 years hard work that DK put in keeping the club afloat and the design of the stadium to someone who has got deep pockets and access to millions.

Without DK there would be no TB. If I had £150m and bought the club it would have only been for what was already setup and ready to go, not through my hard work.

DK funded the Albion alone during those 12 years and managed the project alone did he? Was DK even the main bankroller during that period? I'm not belittling his efforts but let's please not pretend that TB stepped in sometime in 2009 from nowhere.

 

[symyjym]

and you think he done that just because he was a fan
he is a businessman and generously ploughed money into the club,along with others, which if and when he sells he will get back if I had that sort of money I might have put it into the club unfortunately I don't
and if DK had not saved the club TB would have had nothing to invest in

Yep people forget that it is a business investment in property, land deals and building a brand. It's not as though Bloom has set alight to £150m, it is a business venture with fixed assets.

 

[Lord Bracknell]

Dick Knight and Lord Bracknell.......two old men, well past their prime.

One of them just likes to take on 'the big boys'....and one of them nearly did more damage to Brighton & Hove Albion than Bill Archer. Only Robbie Reinelt saved his skin on that one.

Shame to sully their reputations like this.

Forgive me if I'm a tad confused about this. It must be my age.

You're confusing Dick Knight with Kerry Mayo, shirley?

 

[Alex Alex Dawson oo! oo!]

DK funded the Albion alone during those 12 years and managed the project alone did he? Was DK even the main bankroller during that period? I'm not belittling his efforts but let's please not pretend that TB stepped in sometime in 2009 from nowhere.

Exactly so. When Bloom became the majority shareholder he did so by converting into shares the £16m+ loans that had bankrolled the club for years.