Premiership strugglers to seek listings
Wednesday 11 December 1996
Southampton, languishing third from bottom, is merging with Secure Retirement, a quoted property development and healthcare company, which began life providing sheltered housing for the elderly.
The reverse takeover, which gives Southampton a full Stock Exchange listing, values the south coast club at slightly more than pounds 10m.
That is significantly lower than the pounds 47.4m Sunderland, 15th in the Premier League, is valued at under the terms of a placing and offer of shares at 585p. Fans will have to pay at least pounds 585 to become shareholders.
Guy Askham, chairman of Southampton, said the difference in valuation was partly due to the more conservative treatment his club used when accounting for players' transfer fees.
The reverse takeover will see Secure relisted as Southampton Leisure Holdings and provide the football club with instant access to about pounds 6m of fresh capital. "Secure is bringing to the table cash, assets, access to stock market funds and proven business skills," said Mr Askham. "We have great ambitions for this club and this deal will play a very important part in achieving them."
Mr Askham declined to say if the new money would be spent on boosting manager Graeme Souness's squad. But he confirmed plans for Southampton to relocate from their home at The Dell to a 73-acre site to the north of the city that will include a leisure complex. The complex could cost up to pounds 40m to build and is unlikely to be ready before the turn of the century.
Outside London, Southampton is the only Premier League club south of Birmingham and the only top-flight team in the Meridian television area. It has spent the last 18 years in the top flight, but has fought an almost annual battle against relegation.
Sunderland is also in the process of moving ground, though it plans to use the proceeds from the float, expected to be around pounds 10.7m, to improve the club's finances and release extra money for manager Peter Reid to make some big-name signings. Of the 2.05 million new shares Sunderland is issuing, 16 per cent will be available to employees and the public. Dealings are expected to begin on Christmas Eve.
- 4 #JeSuisEd: People share photos of themselves eating awkwardly in solidarity with Labour leader
- 5 Women think Irish men are the sexiest, survey finds
Italian police 'reveal' what Jesus looked like as a young boy
Mysterious 'X-Files' sounds heard miles above the Earth
Florida couple forced to register as sex offenders for having sex on public beach
Who should I vote for in the general election? Take The Independent's interactive quiz to find out which party is the right choice for you
General election: Conservatives mocked online over Boris Johnson's claim of SNP 'jockalypse'
In defence of liberal democracy
General Election 2015: Post-election 'shambles' looms as 70 per cent of voters say SNP 'should not be able to veto UK government policies'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
General Election 2015: Sturgeon claims Scots 'appalled' by Ed Miliband's refusal to work with SNP
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...
£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...