DRAG ALONG

what is a drag along and what does it mean to city

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cheers nobby

Under the 2007 takeover agreement, article 8.1 states that a drag along option requires 50% or more of the shareholders to agree.

Under the 2007 takeover agreement, article 8.1 states that a drag along option requires 50% or more of the shareholders to agree.

can borley and co come up with the required amount if needed

Under the 2007 takeover agreement, article 8.1 states that a drag along option requires 50% or more of the shareholders to agree.

can borley and co come up with the required amount if needed

If PMG want out (which I assume they do) then yes.

Under the 2007 takeover agreement, article 8.1 states that a drag along option requires 50% or more of the shareholders to agree.

can borley and co come up with the required amount if needed

Borle, hall, guy, pmg, whitely make 40%

Don't forget Annis' s and Sam's shares as well !!

These won't want to sell them though will they?

I can't see how a drag along has any relevance to the Malaysians 'investing' money into the club. If they were taking over and buying out the shares then yes, but by the sounds of it in the short term it's more of a cash injection. Whether this will be a new share issue, or buying somebody else's shares I don't know. But we have to remember by buying someone else's shares it will have no effect on the clubs finances

These won't want to sell them though will they?

I can't see how a drag along has any relevance to the Malaysians 'investing' money into the club. If they were taking over and buying out the shares then yes, but by the sounds of it in the short term it's more of a cash injection. Whether this will be a new share issue, or buying somebody else's shares I don't know. But we have to remember by buying someone else's shares it will have no effect on the clubs finances

That's absolutely true.

However, on the premise that the £6m is the first instalment of a total £39m (which was the figure quoted way back in September) to be invested in the club, then securing all the shares is bound to be the first step.

If the Malaysians started clearing debt before they hold all the equity, then the share price is bound to rise as debt levels decrease. That would mean any shareholder who didn’t sell to the Malaysians now would benefit from their efforts and it would cost the Malaysians more to buy them out later.

Of course the above is only a possible scenario and is by no means certain.