Wednesday takeover voted through
MILAN Mandaric’s takeover of Sheffield Wednesday has been approved by the club’s shareholders.
Mr Mandaric already had the backing of 44% of the Owls’ shareholders after having his offer to buy the club accepted by Wednesday’s four principle shareholders; former chairman Dave Allen, directors Keith Addy and Geoff Hulley, and fans group Wednesdayite.
Needing a 51% majority for his takeover of the League One club to be ratified, 99.7% of shareholders who voted voted in favour of the sale to UK Football Investments.
The acquisition is part of a wider restructuring package that will allow the club to move forward debt free and ends any threat of administration.
UKFI, the vehicle used by Mr Mandaric to buy the club, has paid £1 to acquire 100% ownership and has agreed with the Co-Operative Bank, Wednesday’s major lender, to allow the club to move forward free of any residual debt.
Current and former directors at the club, other than David Allen, who own loan notes in the company have all agreed to waive a significant majority of the value of their debts, with any repayment of the remaining sum only taking place if Wednesday gains promotion to the Premier League.
Mr Allen will receive an initial payment on completion of the acquisition along with a further payment if Premier League promotion happens.
Mr Mandaric came to the Owls’ rescue at the end of last month after striking deals with all the club’s major creditors and loan note holders. He paid just under £8m, wiping out the club’s £30m debts, to ultimately acquire the club for £1.
Sheffield Wednesday’s new board will be made up of Mr Mandaric, who will be chairman, and directors Howard Wilkinson and Nick Parker.
Following the vote yesterday, Mr Mandaric said: “I am grateful to the shareholders of Sheffield Wednesday for showing their faith in me. Over the past few weeks, I have spoken with a lot of people who hold this great club close to their hearts.
“I will do everything in my power, working with our excellent management team to restore Sheffield Wednesday to the top table of English football.
“The fans gave me an excellent welcome on Saturday, and again today at the EGM. I know what this club can achieve and it is an honour to be given the chance to take one of the oldest names in the game and work to make it great again.
“I would like to place on record my thanks to the former board, the loan-note holders and to the Co-op Bank for their help in making this deal possible. This club can now move forward with certainty, and I am looking forward to getting down to business and doing what I can to help Alan Irvine and his team gain promotion back to the Championship.”
Mr Wilkinson added: “I am delighted to hand over the stewardship of this fantastic club to Milan Mandaric. When Sheffield Wednesday needed somebody to step up and deliver – Milan was that man.”
