I thought Ashcrofts stake was worth more than that FROM THE GUARDIAN: A year after he helped to save the Championship football club Watford from going into administration, Lord Ashcroft, the controversial Tory donor and former deputy chairman of the party, is in talks to sell his £1.5m stake in the business. According to a statement issued by the club's parent company, Watford Leisure, at the request of the Takeover Panel, Ashcroft is in talks with a potential buyer of his 37% stake, which could lead to a takeover for the whole company. But it emphasised that the talks were at a very early stage and there was no guarantee that an offer would be made. Even so, the news sent shares in Watford Leisure soaring by 35%, up 2.5p to 9.5p; at this level, the company is valued at £4.1m. Ashcroft, who holds the stake through his private company Fordwat, has been the club's major shareholder since 2006. At the end of last year he clashed with the then chairman Jimmy Russo – boss of Valley Grown Salads, which holds 29.98% of the club – over future strategy and control of the club. Ahead of an annual meeting, Russo and his brother Vincent, then vice-chairman, resigned and sought repayment of a near-£5m investment in Watford. This could have pushed the club under, but Ashcroft lent the company a total of £6.5m to help reduce its debt and keep it a going concern. He later exchanged his loans for the bulk of a £10m bond issue. At the same time, the former Watford manager and England boss Graham Taylor became chairman of the business. At the time of its full-year results a month ago, Taylor said: "[We] came very close to being placed into administration in December 2009 and we remain grateful ... to our major shareholder Fordwat – and Lord Ashcroft in particular – for the part they played in ensuring we are now able to look to the future with some months of genuine stability behind us." Since in effect saving the club however, Ashcroft has made little secret of his desire to dispose of his stake. As well as Ashcroft and Valley Grown Salads, the other major shareholder is another ex-chairman, Graham Simpson, who owns 16.79% and supported Ashcroft in the dispute with the Russos. Since the boardroom changes Watford Leisure has been seeking other income, such as using its Vicarage Road ground for a concert by the well-known Watford supporter – and another former chairman – Elton John. The concert brought in revenues of £1.35m and the singer donated his fees to the club. Ashcroft has proved a controversial figure, courting criticism for being non-domiciled for tax purposes for many years before returning earlier this year to live in Britain and pay UK tax on his earnings. He resigned as the Tories' deputy chairman after the May general election, and hit out at the party and David Cameron for not winning an overall parliamentary majority.
A year after he helped to save the Championship football club Watford from going into administration, Lord Ashcroft, the controversial Tory donor and former deputy chairman of the party, is in talks to sell his £1.5m stake in the business. According to a statement issued by the club's parent company, Watford Leisure, at the request of the Takeover Panel, Ashcroft is in talks with a potential buyer of his 37% stake, which could lead to a takeover for the whole company. But it emphasised that the talks were at a very early stage and there was no guarantee that an offer would be made. Even so, the news sent shares in Watford Leisure soaring by 35%, up 2.5p to 9.5p; at this level, the company is valued at £4.1m. Ashcroft, who holds the stake through his private company Fordwat, has been the club's major shareholder since 2006. At the end of last year he clashed with the then chairman Jimmy Russo – boss of Valley Grown Salads, which holds 29.98% of the club – over future strategy and control of the club. Ahead of an annual meeting, Russo and his brother Vincent, then vice-chairman, resigned and sought repayment of a near-£5m investment in Watford. This could have pushed the club under, but Ashcroft lent the company a total of £6.5m to help reduce its debt and keep it a going concern. He later exchanged his loans for the bulk of a £10m bond issue. At the same time, the former Watford manager and England boss Graham Taylor became chairman of the business. At the time of its full-year results a month ago, Taylor said: "[We] came very close to being placed into administration in December 2009 and we remain grateful ... to our major shareholder Fordwat – and Lord Ashcroft in particular – for the part they played in ensuring we are now able to look to the future with some months of genuine stability behind us." Since in effect saving the club however, Ashcroft has made little secret of his desire to dispose of his stake. As well as Ashcroft and Valley Grown Salads, the other major shareholder is another ex-chairman, Graham Simpson, who owns 16.79% and supported Ashcroft in the dispute with the Russos. Since the boardroom changes Watford Leisure has been seeking other income, such as using its Vicarage Road ground for a concert by the well-known Watford supporter – and another former chairman – Elton John. The concert brought in revenues of £1.35m and the singer donated his fees to the club. Ashcroft has proved a controversial figure, courting criticism for being non-domiciled for tax purposes for many years before returning earlier this year to live in Britain and pay UK tax on his earnings. He resigned as the Tories' deputy chairman after the May general election, and hit out at the party and David Cameron for not winning an overall parliamentary majority.
HOW MANY SHARES DOES HE HAVE -17M APPROX @ 9P = £1,530,000. THERE IS YOUR £1.5 MILLION STAKE - THE SHAREHOLDING THE WARRANTS/BONDS ARE IN EFFECT LOANS UNLESS THE WARRANTS ARE ISSUED INTO SHARE CAPITAL OR what EVER PROCEDURE IS DONE BUT THEY WILL HAVE TO BE TRADED AS WELL AT A COST.
the stake of £1.5m is the worth now @9p - what price were the shares issued at that he acquired -was the first batch @62p or about 20p or something like that when he got originally 8m then there was a rights issue or something which he underwrote to take him to £16m. can't remember off hand would need to look it up..
