Scott7 6,170 Posted February 13, 2017 Share Posted February 13, 2017 Buy the shares and you own the company. The company owns the assets subject to any securities. So as BH says, you have to ask the Bank for £100 to buy the shares and in addition £300 to put into the company's bank account. The investment in the company is £300. The total cost is £400. The Bank makes two separate appraisals or more likely a single overall appraisal. Speaking loosely you could say you have invested £400 to acquire and therafter operate the company but the true investment, the money the company gets as opposed to the money the seller of the shares gets is £300. 0 Quote Link to post Share on other sites More sharing options...
MacK1950 2,399 Posted February 13, 2017 Share Posted February 13, 2017 Can anymore of this chat be put into the Business Lounge in the main forums it is quite distracting . 0 Quote Link to post Share on other sites More sharing options...
Uilleam 5,966 Posted February 13, 2017 Share Posted February 13, 2017 Buy the shares and you own the company. The company owns the assets subject to any securities. So as BH says, you have to ask the Bank for £100 to buy the shares and in addition £300 to put into the company's bank account. The investment in the company is £300. The total cost is £400. The Bank makes two separate appraisals or more likely a single overall appraisal. Speaking loosely you could say you have invested £400 to acquire and therafter operate the company but the true investment, the money the company gets as opposed to the money the seller of the shares gets is £300. What is your point? I buy the land, I build the building, I make x% or thereby when I sell, but I have somehow to convince the bank (lender) or other parties financially involved, that the acquisition cost is nil, that the return therefore is greater, and thus the risk commensurately smaller. Forgive me, but that might, in certain circumstances, be construed as fraud. 0 Quote Link to post Share on other sites More sharing options...
Scott7 6,170 Posted February 13, 2017 Share Posted February 13, 2017 True but is that DK's scenario? 0 Quote Link to post Share on other sites More sharing options...
Bearman 9 Posted February 13, 2017 Share Posted February 13, 2017 Can anymore of this chat be put into the Business Lounge in the main forums it is quite distracting . I've just read the last 5 or so pages and I'm none the wiser. 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted February 14, 2017 Share Posted February 14, 2017 Brahim could you not have appeared and said that 4 hours ago lol Apologies for the delay, but: I thought you were doing quite well explaining it yourself I did it earlier and accidently hit the wrong button and lost it, so had to start again 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted February 14, 2017 Share Posted February 14, 2017 (edited) BH are you saying that should a new share issue be offered, the likes of King and the 3Bears will take back their original investment (shares) to buy the club , in the form of equity from the new share issue. This is more a question for BD but my understanding would be that it will be a debt for equity swop i.e. the loans will be converted into some of the new shares. The shares they bought in the open market will still be the same shares and will still be owned by them unless they choose to sell. Edited February 14, 2017 by BrahimHemdani 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted February 14, 2017 Share Posted February 14, 2017 (edited) Really? Really? Do we discount the acquisition costs in any appraisal? Good luck with your bank in that regard, old boy.Actually, do leave off, it is embarrassing. I can only assume that you are being deliberately obtuse. The debate is not about the acquisition costs or about appraising the value of the company; it is a about the amount of money that was required to be invested in the said company once it was in the hands of the purchasers in order to make it "profitable" in a football sense i.e. return it to its former glories. As rbr pointed out, the figure of £30 million was not mentioned until after King &Co had purchased a controlling interest. Edited February 14, 2017 by BrahimHemdani 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted February 14, 2017 Share Posted February 14, 2017 True but is that DK's scenario? No it isn't and I'm quite sure that Uilleam knows that full well. We are not discussing the acquisition of the company, it's value or its possible resale; we are discussing its ongoing operations. Furthermore, not many people (except perhaps Fergus McCann) have ever bought a football club in the hope of making a profit. For all I distrust Mr King, I don't think financial profit was his motive. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,679 Posted February 14, 2017 Share Posted February 14, 2017 New (small) statement imminent apparently. Any update on this, Frankie? 0 Quote Link to post Share on other sites More sharing options...
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