By Kris Gonzo | Senior West Ham Columnist (Follow on X)
It’s easy to see why Daniel Křetínský’s nose has been put out of joint by Vanessa Gold’s decision to sell her shareholding to Amanda Staveley and PCP Capital Partners.
After all, back in June it was announced that the Czech billionaire had an agreement with Gold to buy part of her shareholding, making him the most powerful man at the football club. As I’ve written previously, that delay has now created uncertainty which others have been only too happy to exploit.
Unfortunately, nearly two months have passed since then and Křetínský hasn’t been acting like a Czech billionaire at all. The delay in purchasing the additional shareholding has created a window of opportunity for Staveley to drive a bus straight through it.
‘Money talks’… in London Stadium’s boardroom three way tug of war that has just begun
Only Křetínský himself can answer why he failed to complete the deal when he had the opportunity, but the club now faces another period of uncertainty while the remaining West Ham shareholders decide whether to exercise their pre-emption rights and purchase some or all of the available shares.
The Gold family’s position is understandable
From Vanessa Gold’s point of view, it’s easy to see the attraction.
The family business, Ann Summers, has been suffering significant financial losses, while David Gold’s former family home remains for sale through Savills at a reduced asking price of £3.5 million, having previously been marketed at £6 million.
With reported losses of around £13 million at Ann Summers, the Gold family are clearly not short of assets, but you can understand why selling all of their West Ham shareholding at a premium would be more attractive than selling only part of it.
Křetínský, however, appears far from impressed.
As reported by The Sunday Times, a spokesman for the Czech billionaire said:
“The agreement we had reached with the Gold family in June provided stability for the club at a crucial time. This does the opposite. We will always act in the best interests of West Ham United and are reviewing all of our options, including exercising our pre-emption rights in full.”
Time to stop reviewing
If Křetínský really does have the ambition not just to own a larger stake in West Ham but to run the football club, then I’m not sure there’s much to review.
He needs to buy as many shares as he can, and he needs to do it quickly.
Of course, there are those who suggest he’s struggling to find the working capital required. Whether that’s true or not, only Křetínský knows.
One can only imagine what David Sullivan makes of all this.
Once again, he finds himself as the most powerful man at West Ham, despite no longer having a seat on the board.
One thing is for certain.
It’s shaping up to be a very tricky few months for everyone connected with the football club.
Pre-emption rights normally apply to the issue of new shares to ensure existing holders can maintain their percentage, so may not cover the sale of existing shares. Worrying however in the WHU FC Ltd Articles of Association there is a clause that says “47.2 No sale, transfer, pledge, charge or other disposition of any shares or any interest in any shares shall be effected without the consent of all shareholders” Does this mean any shareholder can block any sale they don’t like?
All said and done, we have parties fighting for control of our beloved club. Let them fight, then we will judge. If it hampers this season, I will listen to the winners apology. Then onwards and upwards, or goodbye. Then the old fly squatting proverb, they have to be right every time.
But Kretinsky only wanted to buy 16 percent of the gold family shares so how can he now complain when another buyer comes in and offers to buy the lot?
This is how it could play out if DK wants to purchase all of the Gold shares:
Daniel Křetínský can buy all of Vanessa Gold’s shares, but not in a single step, the process occurs in two rounds.
Round 1: Existing shareholders, including Křetínský, can only purchase a proportional percentage of the shares being sold (roughly 7% of the 25.1% stake, based on his current 27% holding – so he can basically purchase 27% of the the 25.1% Gold shares in the 1st round).
Round 2: Any remaining shares that other shareholders do not purchase then become available to Křetínský, allowing him to acquire the full 25.1% stake if no one else bids.
This pre-emption process is expected to take approximately two months, during which Křetínský has stated he is reviewing his options to exercise these rights in full.
Another point to take note of is that due to the ongoing investigation into his actions, there is the distinct possibility that DS might not be offered the option to purchase any shares using his pre-emptive rights if the Independent Football Regulator gets involved.
Sullivan’s ability to participate in this transaction is greatly hindered by his current status and the ongoing investigation by the Independent Football Regulator (IFR). The IFR is investigating Sullivan’s suitability under its Owners, Directors and Senior Executives regime. This scrutiny makes it legally and practically difficult for him to expand his influence or engage in complex share transactions while under investigation.
As the subject of the allegations and the person that DK, the Gold family and other stakeholders are trying to distance themselves from, Sullivan being involved in the pre-emptive rights issue could also be considered a conflict of Interests.
I hope that helps explain some of the share and percentage issues and sheds some light on other issues.
COYI!
What a typical West Ham confused disaster . Just when it seemed Kretinsky had finally got a grip on running the club and created some positivity.
Unbelievable, 2 months of confusion going into the crucial season to get back up. Whatever people say it must effect transfers and the rebuild of the team and squad that is in a right mess.
Let’s be honest, none of this going to have come as a surprise to Kretinsky. I mean, even we all knew that there was a strong possibility of Stavely investing with her crew sniffing around over the past few months. He and his own associates are highly experienced hard nosed business people, they will have now war gamed all possible scenarios and factored in the steps he would need to take to get what he needs or not as the case may be. What we stop eventually end up with is those that are determined and hungry enough to take on the challenge, not just somebody left holding the baby by default because of being the only man left standing. If Kindly steps up then he’s more than worthy.
Amanda Staveley and Co. will end up as majority shareholders. (Possibly 100% if Tripp Smith and the minority investors are offered a deal they can’t refuse)
Kretinsky was trying to buy only 16 percent of golds shares right? At 150 million valuation would have cost him 95 million. He’d had that agreed by gold but then Staveley comes in and offers more 170 million and now Kretinsky can only buy a proportion of the shares he wanted. No wonder he’s upset about it.
Well if my understanding is right existing shareholders can buy proportional amount of shares. So if Kretinsky wants to he can buy 27 percent of the proposed 170 million Staveley is offering, so that would be roughly 45.9 million it would cost him. If Sullivan wants to buy he can at 38.8 percent proportion of the club buy himself roughly 64.6 million of the 170 million.
Not sure Sullivan will be buying but Kretinsky might well be buying himself a bit more if the club. Hes just peed off he couldn’t buy the whole lot for himself at a cheaper price than stavely is offering right?
The proportional amount you mention is correct, but that is only part of the full transaction. The process occurs in two rounds. In the 1st round, you can buy up to the proportional amount to your current shareholding in the club, and then any share options not taken up by existing other share holders can then be purchased in the 2nd round. So in theory, Daniel Křetínský can buy all of Vanessa Gold’s shares, but just not in a single step.
Round 1: Existing shareholders, including Křetínský, can only purchase a proportional percentage of the shares being sold (roughly 7% of the 25.1% stake, based on his current 27% holding – so he can only purchase 27% of the the 25.1% Gold shares in the 1st round).
Round 2: Any remaining shares that other shareholders do not purchase then become available to Křetínský, allowing him to acquire the full 25.1% stake if no one else bids.
This pre-emption process is expected to take approximately two months, during which Křetínský has stated he is reviewing his options to exercise these rights in full.
Not entirely correct. What you describe is round 1. In round 2 of the pre-emption rights DK can buy all of the shares up for sale not bought by the other directors in round 1 so he can effectively take majority control of the club and push Staveley out of the equitation ( let’s hope he does)
Another drama? Haven’t we had enough? If it’s Kretinsky’s ambition to be the major shareholder he should get it done. And quickly. The spectre of David Sullivan potentially adding fuel to the fire is just too much. Once again the focus is being dragged away from football. Kretinsky is in pole position so it needs to be done. He must allay the fears – or, if not interested, step aside.
Kretinsky hasn’t managed to sign off on the Engels deal with Celtic for £25m, whilst being much speedier with the pen when clubs come calling for our midfielders. Can’t believe any fan can be anything other than underwhelmed with his leadership these last few weeks. Almost like he wants to keep WHU share values at Championship level for a while to come?
He ain’t main shareholder Sullivan is so there lies the issues
The plot thickens…I thought that Kretinsky and Vanessa Gold were in cahoots at board level and would work together. But somehow, DK has not been able to complete the deal agreed in June and the Gold shareholding has not been bought. If the Gold family need the money to keep Ann Summers afloat then selling the house is not enough. Which leaves the WH shares. Staveley is no fool but buying cheap and re-selling once WH are back in the PL is not going to be good for the club 🙁
Vanessa Gold has forced his hand and clearly there has been some shenanigans going on behind the scenes given the delay. The acceptance from Staveley (whilst a very real offer) I suspect will mean the dithering Czech will now be forced to make a move for all the shares now at a higher price.
A good deal for Vanessa Gold, no Staveley for Kretinsky to deal with and perhaps a lesson learned to move quicker in the future.
All the while Sully the little Grinch sits on high looking over WHU town as the confusion reigns.