Town takeover: Key questions answered as deal is agreed
AS THE JOHN FENTY ERA ENDS AT THE MARINERS WE LOOK AT WHAT HAPPENS NEXT AT BLUNDELL PARK
THE takeover of Grimsby Town is almost complete, with fans now counting down the days until May 5. That’s when the club are set to hold a general meeting for shareholders, who have already been given notices to vote on the proposals that will lead to the handover of power at Blundell Park. It was confirmed on Saturday that a deal had been reached for majority shareholder John Fenty to sell his stake in Town to Jason Stockwood and Andrew Pettit.
The pair are now expected to have their takeover completed next month – but what do we know about the deal that’s in place? Here, we answer some of the key questions…
What will the new owners’ stake in the club be?
With John Fenty selling his stake in the club, 1878 Partners Limited – the company formed by Stockwood and Pettit – will own 40.97 per cent of the shares distributed. Those shares hold a nominal value of £975,000.
Will John Fenty remain at the club?
No – Fenty will resign as a director of the club.
As part of the deal, the outgoing owner’s £1.5million in loans will be repaid to him in three annual instalments, with the final repayment to be made by December 31, 2023. The repayment of Fenty’s loans proved to be a sticking point in the consortium’s attempts to come to an agreement during the winter, with the eventual deal not being dependent on the club’s position in the football pyramid.
What roles would the new owners take?
Both Stockwood and Pettit would be appointed as directors of Town, with Stockwood taking over from Philip Day as chairman.
He would take on the role for a fixed term of three years.
Why is the club being re-registered?
Key to the takeover is the vote to re-register the club as a private limited company. Town have been one a few clubs to be run as a public limited company, meaning shares can be freely sold and traded to the public. According to the notice sent to shareholders, Town’s standing as a PLC has resulted in a lack of progress from parties expressing an interest in taking on control of the club.
The notice states: “The Board has previously made shareholders aware of this issue and has stated that should this continue to affect the search for a new custodian then conversion to a private
limited company would need to be considered, with the consequent impact on the ability of other shareholders to dispose of their shares.
“In light of the interest of 1878 Partners Limited to acquire the majority shareholder’s shareholding, the board has come to the conclusion that the time to do so is now and consequently their recommendation is that shareholders vote in favour of the two resolutions. This is the only way that the necessary changes can be made.”
What does it mean for other shareholders?
As part of the proposals, new “tag-along” rights are being included, which the notice says will benefit minority shareholders. The proposal means that there can’t be a future sale of a majority interest in shares of the club without all minority shareholders being given the opportunity to sell their shares at the same price per share to the interested party.
What happens if shareholders vote against re-registering the club?
The notice states: “If GTFC was not re-registered as a private company prior to the proposed transaction, it would trigger a mandatory bid obligation that would arise under Rule 9 of the Code, pursuant to which an offer would be made by 1878 Partners for the whole of the issued share capital of GTFC (other than those GTFC shares already owned by 1878 Partners).”
What are the new owners proposing?
According to the notice, 1878 Partners will look to “modernise the values, operations and capabilities of the organisation, to take the GTFC up through the professional divisions and to re-establish GTFC at the heart of the community.
“1878 Partners wants to build a culture of inclusion, trust and high performance within GTFC and for GTFC to become a beacon of pride, progress and aspiration for the local community.”
As part of their plans, the new owners will look at the prospect of a new community stadium, although it is not known which location they would favour – previous consortium member Tom Shutes had drawn up plans for the docks, while the club had been pressing ahead with Freeman Street before the coronavirus pandemic put a halt to the relocation.
The new regime have also stated they will look at upgrading training facilities as an “immediate priority”.
Mariners boss Paul Hurst has previously spoken about those plans, telling the BBC: “We’re not going to have Manchester United’s training ground suddenly. I’m looking at some things like gyms, the lads have printed out some examples from different clubs.
“It just gives you some ideas, and you look at some League Two clubs that have got things, and with all due respect to ourselves, we haven’t quite got them.
“I think this is what the new owners are keen to come in and try and give the club the best chance to be successful on the pitch.” The new ownership will also be initiating a fans survey, which they say will be launched “immediately”, giving supporters their own chance to put their views across on what they want to see.
Will the vote go through?
Almost certainly – the club’s directors have given their backing to the resolutions and encouraged shareholders to follow suit, while many supporters have already posted on social media indicating they will be voting in favour of the proposals. Therefore, it seems the long wait for a Grimsby Town takeover will finally be ended on May 5.