SISU Confirm Shareholders Offer

Last updated : 14 December 2007 By Covsupport

SISU have finally announced their offer to those who have shares in Coventry City FC (Holdings) Ltd.

The Hedge Fund based in Hannover Square in London, whose business reputation has been deemed aggressive by many financial analysts and had CEO Joy Seppala accused of lying in a High Court wrangle over electricity company TXU, are looking for 90% of the existing shares. This for the Holdings Company is an unusual step.

It is the first time since the shares were first issued some 48 years ago and with the club having gone through many Chairman, that such a high percentage is being sought. Most settled for what they could get and in fact,Geoffrey Robinson only had 43% during his tenure.

The deal which SISU are offering and already deemed by some as grossly offensive, means that "all shareholders will receive a nominal amount for their acceptance of the acquisition and will be offered non-voting and non-participating class of shares, as well as a framed share certificate, following the successful completion."

Concerns by shareholders, some of whom stand to lose anything upto £300k, have aired the fact that by having non-voting, non participating shares, Mr Ranson,who has no experience of running a football club on a day to day basis, will have free range to do what he likes with the club and will be accountable only to those he appoints to his board to replace the existing Board.

Monday evening has been the date set for the completion. However, not all shareholders live in Coventry, some live abroad whilst others are dotted around the United Kingdom and may or may not be attending the game against Southampton tomorrow.

Whether they would be able to return their letters which are expected in tomorrow's or Monday's post by the dead-line looks highly unlikely.

Also, groups including the City Supporters Club and the Sky Blue Trust would have to first have a vote of all their members to decide whether they wish to transfer their shares to Mr Ranson and his consortium and may not be able to organise this in time.

SISU,who are reported to have paid £22m for the club are to organise a restructuring of all debts, have been reported as wanting to make resources of up to £20m to support the development of the club.

An agreement has been signed with ACL to allow City to continue to use the Ricoh Arena.