Hemmings Contacts Other Shareholders
Deepdale PNE Holdings Ltd have now acquired just over 51% of the shares in Preston North End PLC and have sent out letters to all remaining shareholders with the intention of purchasing their shares at 5p each. Hemmings who is behind the company who have acquired just over half of the football club has a target of 75% of the shares in the club so he can then de-list the company from the AIM stock market and run the club as a limited company thus avoiding the embarrasment of Preston's financial affairs becoming public. In order to obtain 75% of the club Hemmings will now have to target London based North End fan Wilkinson and the Patel family who combined own under 20% of the club. Hemmings will also have to purchase off other minor shareholders - mostly fans who bought shares when the company was floated on two occassions in the 90's. If Hemmings is unable to gain the 75% required he has advised in his letter to the shareholders that he will withdraw all funding to the club thus putting the club at immediate risk of administartion and likely liquidation thereafter. DPNE then have the final target of purchasing 90% of the club's shares which would then force any remaining shareholders to sell at the 5p rate. Hemmings is hopeful this can be done before the start of pre-season training so the HMRC bill can be paid and the club can then become active in the transfer market again.
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