Ashley Unveils Newcastle Takeover Bid

Mike Ashley, the billionaire owner of the Sports Direct retail group, has
unveiled a £133.1m offer to takeover FA Premier League club Newcastle United.

Ashley, who floated his company earlier his year pocketing more than £900m in
the process, has already bought a 41.6% stake in the club from majority
stakeholder Sir John Hall for more than £55m.

Under stock exchange rules, Ashley’s company now has to make a cash offer for
the remaining shares – including a stake of around 29.8% belonging to chairman
Freddy Shepherd.

Sports Direct confirmed that it values the remaining shares at the same price
as it existing stakeholding.

The group runs the Sports World retail chain and Lillywhites, and its brands
include Dunlop, Kangol and Karrimor.

Ashley bought his shares through his firm St James Holdings Limited (SJHL),
which he established specifically for the purpose of investing in Newcastle.

Ashley’s surprise takeover bid effectively ends long-running speculation over
the future owners of Newcastle with the Belgravia Group investment fund and
hedge fund Polygon both previously linked to a buy-out.

In October 2006, Newcastle United announced a £12m financial annual loss
after heavy investment in players and a fall in revenues due to its failure to
qualify for Europe.

The result was a reversal in financial fortune for the Premiership club which
made a £620,000 profit the year before.

Sports Direct has been the subject of rumours surrounding its poor
management structure since it floated earlier this year with Ashley himself
admitting that the company was ill-prepared for the flotation.