Shares

[Desso]

Some of us still have shares in Bristol City or Bristol Sport or Pula or whatever. Can someone explain why there are no shareholders meetings any more, and in the event of a future takeover (not the possible investment being talked about) would we get our money back or are the shares now worthless? 

[Eddie Hitler]

They're not worthless but they have been so diluted by the Lansdowns converting debt to equity, for the best motives as this effectively means their writing off that debt as they alreayd own the great majority of the company, that they aren't going to be worth much.

Per Note 25 of the accounts there are 125m shares in issue.  I would guess that the club and ground, and bear in mind that the ground is mainly financed by an external debt so it has little net worth at present, might go for £40m - £50m. Say £40m.

This makes each £1 share worth 32p in the event of a takeover.  Or if you have the £10 foundation shares £3.20; though they will be recorded as 10 x £1 shares on the register.

This underlines how generous was the Lansdowns' offer last year to buy back shares at cost; £1 each "valuing" the club and indebted ground at £125m.

Though if I had had a small amount I would probably have kept them; as it was a four figure sum well I'm not that misty-eyed.

 

https://find-and-update.company-information.service.gov.uk/company/01501663/filing-history

 

It used to be the case that you could sell them by advsing Burgess Salmon of this and they held a listing of people who wanted to buy so they would sell at a premium.  Now that the register has been taken over by a bigger share registrar (I forget the name but they handled the buy back of shares last year) I don't know how it works if you wish to sell.

[Bristol Rob]

Pretty sure it was always a worthless investment, as they club were never likely to pay a dividend.

If memory serves, SL's ownership percentage meant he was obliged to offer to buy shares held by individuals a couple of years back and the offered price was quite generous for what were effectively certificates that weren't worth the paper they were printed on.

[Bristol Rob]

3 minutes ago, Eddie Hitler said:

They're not worthless but they have been so diluted by the Lansdowns converting debt to equity, for the best motives as this effectively means their writing off that debt as they alreayd own the great majority of the company, that they aren't going to be worth much.

Per Note 25 of the accounts there are 125m shares in issue.  I would guess that the club and ground, and bear in mind that the ground is mainly financed by an external debt so it has little net worth at present, might go for £40m - £50m. Say £40m.

This makes each £1 share worth 32p in the event of a takeover.  Or if you have the £10 foundation shares £3.20; though they will be recorded as 10 x £1 shares on the register.

This underlines how generous was the Lansdowns' offer last year to buy back shares at cost; £1 each "valuing" the club and indebted ground at £125m.

Though if I had had a small amount I would probably have kept them; as it was a four figure sum well I'm not that misty-eyed.

 

https://find-and-update.company-information.service.gov.uk/company/01501663/filing-history

 

It used to be the case that you could sell them by advsing Burgess Salmon of this and they held a listing of people who wanted to buy so they would sell at a premium.  Now that the register has been taken over by a bigger share registrar (I forget the name but they handled the buy back of shares last year) I don't know how it works if you wish to sell.

Wasn't it ComputerShare?

[Eddie Hitler]

4 minutes ago, Bristol Rob said:

Wasn't it ComputerShare?

That rings a bell.  I can't find it listed in the Accounts or Confirmation Statement.

[Desso]

Thanks for your replies and info. I think I've got a hundred but not keen to sell. As pointed out, practically worthless but a bit of club memorabilia. 

[BTRFTG]

7 minutes ago, Desso said:

Thanks for your replies and info. I think I've got a hundred but not keen to sell. As pointed out, practically worthless but a bit of club memorabilia. 

Had you sold your shares you'd have been given a certificate to honour your investment when City were in trouble. Given the size of his shareholding SL was obligated to make an offer to buy all existing shares. Shareholders were aware that should they not sell then once the offer expired shareholders meetings aren't required given he could railroad through whatever it was he wanted to do (hence why he had to make the offer in the first place.) His offer to buy back at face value was, indeed, most generous.

As net liabilities exceed assets your shares would be worthless should the football club be liquidated.

[Red-Robbo]

36 minutes ago, Desso said:

Thanks for your replies and info. I think I've got a hundred but not keen to sell. As pointed out, practically worthless but a bit of club memorabilia. 

I've got 50 and keep them as a memento of my dad.

I don't need £16 that urgently! 

[Desso]

I went to the last shareholders meeting many years ago and one of SLs proposals was voted against by the shareholders. I can't remember what it was but he wasn't a happy man. Perhaps somebody can remember what it was.

[pongo88]

I’ve got a few.  I’m keeping them until a foreign multi billionaire wants to buy the clubs and they suddenly make me rich 

[basshead]

3 hours ago, Desso said:

I went to the last shareholders meeting many years ago and one of SLs proposals was voted against by the shareholders. I can't remember what it was but he wasn't a happy man. Perhaps somebody can remember what it was.

I was there aswell. He wanted to stop having share holders meetings and put it to a vote and lost but still done it anyway. Like you say he had a bit of a paddy

[Desso]

2 minutes ago, basshead said:

I was there aswell. He wanted to stop having share holders meetings and put it to a vote and lost but still done it anyway. Like you say he had a bit of a paddy

That's it. I'm not sure that too many people went to the meetings to listen to a load of boring accounts being read out, but it was a chance to ask questions about what was happening in the club. Pity they stopped.

[ExiledAjax]

22 minutes ago, basshead said:

I was there aswell. He wanted to stop having share holders meetings and put it to a vote and lost but still done it anyway. Like you say he had a bit of a paddy

 

14 minutes ago, Desso said:

That's it. I'm not sure that too many people went to the meetings to listen to a load of boring accounts being read out, but it was a chance to ask questions about what was happening in the club. Pity they stopped.

Likely what's happened somewhere along the line is that your shares have had their rights altered so that you no longer have a right to vote. 

A private company is not required to hold an annual general meeting and so a) "shareholders meetings" are no longer required to be held and b) even if they were your shares mean you don't have the right to attend and vote at them.

[Desso]

30 minutes ago, ExiledAjax said:

 

Likely what's happened somewhere along the line is that your shares have had their rights altered so that you no longer have a right to vote. 

A private company is not required to hold an annual general meeting and so a) "shareholders meetings" are no longer required to be held and b) even if they were your shares mean you don't have the right to attend and vote at them.

Thanks