Paul Quinn 18/12/2024 6comments  |  Jump to last

On the eve of Everton's takeover by The Friedkin Group, I have taken a look at the potential impacts to the increasingly marginalized minority shareholders. 

The Everton Football Club Company Limited is a private limited company. It is owned by the holders of the 135,000 ordinary shares issued by the company. In total, there are 2,114 holders of the ordinary shares. 

The issue of new shares (in respect of capitalising the £450M of shareholder loans currently owed by the club) … requires the approval of The Friedkin Group after their acquisition.

The issue of new shares to cover the capitalisation of the shareholder loans … would see the minority holdings be heavily diluted to less than 0.5% perhaps as low as 0.25%.

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At what point, particularly in the context of no statutory requirement to hold general meetings, does the notion of individual shareholdings become just a quaint (but no doubt important to many existing shareholders) nod to the past?

» Read the full article at The Esk

Reader Comments (6)

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Michael Kenrick
1 Posted 19/12/2024 at 11:21:36
So Paul Quinn published this on his website yesterday and we now have some clues about the magnitude of the changes he refers to…

Although it turns out there is less clarity and more confusion, with new shares issued to give Roundhouse either 98.8% ownership (per The Telegraph) or 99.5% ownership (per the BBC) of EFC Co Ltd.

But as neither indicate either the number of new shares issued or the new total beyond the 135,000 existing… we minority shareholders are none the wiser.

Denis Richardson
2 Posted 19/12/2024 at 12:37:26
Michael, a letter was supposedly sent to Everton shareholders detailing the new share structure. Did you get anything?

Am on holiday so don’t know if I got anything in the post.

Allen Rodgers
3 Posted 19/12/2024 at 13:02:22
Denis, shareholders have received an email version of the letter today, with a ' hard copy ' to follow by post. There are three resolutions to vote on, not that our votes are relevant in the overall picture.
Michael Kenrick
4 Posted 19/12/2024 at 13:06:55
No, I didn't get that previous shareholder letter. So I should check my registration at the Shareholder Portal, if I can find it…
Andy Riley
5 Posted 19/12/2024 at 13:14:55
Michael - the shareholder letter explains that the share issue is in two tranches. I think the first by Blue Heaven before completion which takes the majority holding to over 98% and then a second by the new owners which takes their majority shareholding to 99.5%. That’s how I understand it anyway but I’m not an expert?
The value of my single share must have reduced given that before this it was one of 5.9% of the shareholding and after it will be one of 0.5%.
My holding is not an investment but purely of sentimental value so I personally am not bothered about that. However the estate of BK must have taken a similar devaluation on their 1.9% holding?
Allen Rodgers
6 Posted 19/12/2024 at 13:21:41
Michael,

I trawled through the very, very long list of small shareholders on The Esk link in your article, to find my own name.

By chance I happened to spot your name in there too!

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