Takeover

[Pragmatist]

This piece by Steve Madeley is well worth a read.

Our predicament

Bit confused at the level of MSD dept ? Is it £27m or £27m + an additional loan taken out in December.

£20m plus the additional loan. 


We will get to discover the value of the additional loan, when the accounts to 30th June 2023 are published on companies house website (around start of April).

The unconfirmed rumour is an extra £8m, so £28m plus any interest (we may well have had to pay quarterly rather than letting it roll up).

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Don't want to be a party proper.
But...

Talkshite interviewed a Reading supporter today about the pitch invasion which resulted in the game last weekend being abandoned.

One point which stood out for me was the fact that the current owner Dai Yonnge had lined up several prospective buyers but each time attempted to renegotiate the terms at the eleventh hour.

Is this standard Chinese business strategy?

If so we may be waiting for a while for new owners.

There is speculation amongst Reading fans that Yongge WANTS administration as he wants to develop the side.

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Don't want to be a party proper.
But...

Talkshite interviewed a Reading supporter today about the pitch invasion which resulted in the game last weekend being abandoned.

One point which stood out for me was the fact that the current owner Dai Yonnge had lined up several prospective buyers but each time attempted to renegotiate the terms at the eleventh hour.

Is this standard Chinese business strategy?

If so we may be waiting for a while for new owners.

I may be talking utter arse but I think the involvement of MSD may be in our favour? Could they not apply some pressure to the current owner?  Any of you finance peeps want to pitch in?

They could only do anything formally if the loan is in default. However, no change of control can take place without MSD’s consent, which means they could block any potential buyer who doesn’t commit to immediately repaying the MSD loans. They simply don’t give consent if that commitment isn’t given to their satisfaction.