12:00pm Friday 25th April 2008
Representatives of Watford Football Club are understood to have met with at least one party interested in a takeover of the Vicarage Road club, and a second verbal offer is also believed to have been received.
The Watford Observer understands a Ukranian businessman and a Thai consortium are the two interested parties believed to have held negotiations to buy the club in recent weeks. One offer is thought to be as much as 70p per share, valuing the club at around £30m.
The Stock Exchange currently values the club at £8.1m.
However, Hornets chairman Graham Simpson says he has not entered into any discussions with Michael Ashcroft, the club's major shareholder, about selling the club but says he would "welcome a good offer".
This newspaper believes discussions are already underway and involve Keith Harris, the former Football League chairman who has overseen foreign takeovers at Manchester City, Chelsea, Aston Villa and West Ham United.
Harris was quoted in the Guardian in November as saying that "four Championship clubs are currently looking for buyers" and that he believed the Championship had become a more attractive market for investors.
He said: "The wealth differential has expanded between the Premier League and the Championship, so people are looking lower.
"A football investor is an inherent gambler. If they are saying I have time', they will pick a lower-placed club - which will cost less - and back themselves to take the club to the play-offs, to win the play-offs and then make a run in the Premier League with their own cash generation."
As well as external advice, the club is perfectly placed to draw on knowledge from within when it comes to such matters.
Strand Partners, the company Watford's major shareholder Ashcroft has a significant investment in, state on their website that they have "significant experience in advising clients on takeovers".
It would be difficult to imagine any potential move to buy the club happening without Strand having a key role to play.
However, when directly asked if Watford had been in discussions with at least one buyer, chairman Graham Simpson said it had had "no discussions" although he added the search for new investors was ongoing.
"I can categorically say we have had no discussions with any investors," he said.
"I wish we had an offer that was good I could consider. I have always said I would welcome it. If an opportunity came along, someone with deep pockets who was prepared to take this club forward, then I think that is worth considering. I would gladly stand down and go back to being a fan on the terraces. At this moment in time we have nothing."
Ashcroft, the deputy chairman of the Conservative Party, and the Russo brothers, Jimmy and Vince, are the club's major shareholders.
Ashcroft, who recently increased his stake in Tottenham Hotspur, owns 37.16 per cent of the club through his Fordwat investment vehicle, while the Russos' company, Valley Grown Salads, own 29.13 per cent. Simpson held 16.8 per cent as of June 2007.
Others shareholders include director Andrew Wilson, Tim Shaw, David Lester, Charles Lissack and Chris Norton.
"The majority shareholder of this club is Michael Ashcroft and I have never had a conversation with him about selling this club," said Simpson.
"He has never given me any indication that he wishes to sell this club. I don't talk to Jimmy and Vince Russo. I am the other majority shareholder and I am more than comfortable running this club as it is at the minute."
He added: "At this moment in time we are looking for other non-executive directors and other investors. We have had conversations but we've not met an investor yet. I would like to do that because I'd like to tell them what a brilliant club this is and how well we are doing."
Based on the interim accounts for the six months ending December 31, 2007 the club would appear to be facing financial difficulty unless they find new owners, recruit new investment to the current board, are promoted or make drastic cost-cutting measures to reduce the operating expenditure.
The club has net current liabilities of £11.1m, meaning that over the next 12 months they have £11.1m owing more than they are owed. Of this, £5.1m is a bank loan due within one year. A further £2.8m is due to trade creditors in excess of trade debtors.
There appears to be no money ringfenced for stadium development.
Simpson again confirmed there is a contingency plan in place should the club fail to win promotion.
"There is a Plan A and a Plan B," said the chairman. "If it is a Plan B we have to cut our cloth accordingly. I would never lead us down a road we went down five or six years ago."
skint, South Oxhey says...
12:36pm Fri 25 Apr 08
KL massive, Kings Langley says...
12:41pm Fri 25 Apr 08
rogeruk, Weybridge says...
1:09pm Fri 25 Apr 08
SIMMO, BUCKS says...
1:12pm Fri 25 Apr 08
SIMMO, BUCKS says...
1:15pm Fri 25 Apr 08
Vicar Rage, says...
1:22pm Fri 25 Apr 08
piemagico, London, UK says...
1:38pm Fri 25 Apr 08
peter parker, the big apple says...
1:39pm Fri 25 Apr 08
SIMMO, BUCKS says...
1:41pm Fri 25 Apr 08
Vicar Rage wrote:Spot on Vicar rage
The Watford Observer, and in particular Kevin Affleck, have taken no end of abuse and criticism for what have been described as 'unsubstantiated' 'trouble-making' and 'negative' stories. The critics have always said that the WO lies and the club tells the truth. Here we have a massive story from the WO, which the Chairman pretty well says is not true. Now, a few hours later, the club release a statement confirming the story. Would all those who have been so hostile and aggressive towards the WO and KA like to apologise? Only last week I saw posters condemning the paper for mentioning a potential takeover of Watford in a story about Ashcroft buying more shares in Spurs. Well, the WO and KA have got this one, a massive story, spot on. Is that substantiated enough for everyone? I mean, but for the WO running this story, do you really think the club would have announced anything today? Congratulations to the WO and KA for doing their job, asking the questions fans wanted asked and giving fans the information they deserve.
Vicar Rage, says...
1:50pm Fri 25 Apr 08
AD, Bucks says...
2:05pm Fri 25 Apr 08
Billie, Kings Langley says...
2:18pm Fri 25 Apr 08
andy, oxhey says...
2:23pm Fri 25 Apr 08
kingmarlon, wigan says...
2:30pm Fri 25 Apr 08
Callisto9000, Edgware says...
3:07pm Fri 25 Apr 08
Jenkins, Hemel says...
3:07pm Fri 25 Apr 08
henry, oxhey says...
3:09pm Fri 25 Apr 08
Vicar Rage, says...
3:32pm Fri 25 Apr 08
optimistic, london says...
3:41pm Fri 25 Apr 08
Erik, Lincoln says...
3:57pm Fri 25 Apr 08
Happy Grazer, Aylesbury says...
4:27pm Fri 25 Apr 08
Happy Grazer, Aylesbury says...
4:29pm Fri 25 Apr 08
Happy Grazer, Aylesbury says...
4:31pm Fri 25 Apr 08
Professor Plum, The Billiard Room says...
4:31pm Fri 25 Apr 08
john, greece says...
4:34pm Fri 25 Apr 08
Winston, watford says...
4:56pm Fri 25 Apr 08
john wrote:I have said all along there was a hidden agenda, and this confirms it!
i assume there has been interest for sometime but no one would have wanted to rock the boat vis a vis the planning permissions by saying we had foreigners in to buy the club. Amazing co incidence as soon as planning permission granted we get a tentative offer. I imagine it must have been incredibly difficult for AB knowing the club has been up for sale all season. But still no excuse for him making the football on show so incredibly difficult to digest.
rogeruk, Weybridge says...
5:03pm Fri 25 Apr 08
Callisto9000, Edgware says...
5:06pm Fri 25 Apr 08
Vicar Rage wrote:No, that would be silly. What I'm saying is that GS and WFc haven't acted improperly. Why rock the boat until you have to? As I said; the fact that someone has made an approach is not much of a surprise and let's face it, if GS had said it ealier, he'd be accused of 'trying to deflect from Watford's poor form' or 'taking the heat off Aidy' by making something out of nothing. Maybe that's why they tried to get past the deadline (if they did at all).
Callisto According to the Watford Leisure PLC website, under rul3 8.3 on the City Code of Takeovers and Mergers, any "interest in 1% or more" of the business "must be publicly disclosed no later than 3.30pm (London time) on the London business day following". So chairman denies the story right up to the WO deadline last night, and then a statement is rushed out before 3.30 the next day. Are you suggesting they were contacted, met up, discussed it and decided there was 'tentative' interest in the space of one night?
Vicar Rage, says...
5:25pm Fri 25 Apr 08
rogeruk, Weybridge says...
5:35pm Fri 25 Apr 08
woskaa, harrow says...
6:23pm Fri 25 Apr 08
Hapless Horn, says...
8:10pm Fri 25 Apr 08
Winston wrote:Bit of a duffer I think Winnie! The rules (and indeed laws) that apply should be simple enough for even you to follow.speculation is not always interest and interest is not always an offer..
john wrote: i assume there has been interest for sometime but no one would have wanted to rock the boat vis a vis the planning permissions by saying we had foreigners in to buy the club. Amazing co incidence as soon as planning permission granted we get a tentative offer. I imagine it must have been incredibly difficult for AB knowing the club has been up for sale all season. But still no excuse for him making the football on show so incredibly difficult to digest.I have said all along there was a hidden agenda, and this confirms it!
Hapless Horn, says...
9:08am Sat 26 Apr 08
Hapless Horn, says...
9:35am Sat 26 Apr 08
Roger, St Albans says...
10:25am Sat 26 Apr 08
WFC & Proud, Watford says...
9:29am Mon 28 Apr 08
Hexham Hornet, Hexham says...
4:39pm Tue 29 Apr 08
Hapless Horn, says...
12:26pm Thu 1 May 08
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Hapless Horn, says...
12:12pm Fri 25 Apr 08
Personally i am a a bit cautious, but I know that creepy Colin & co are in favour of the Thai consortium as he wants them to introduce him to some "ladyboys" not my cup of tea at all, but at least it might keep him away from here!