Shares in Newcastle United jumped 10 per cent in early trade today as Jersey-based investment concern The Belgravia Group, admitted it is considering an offer for the Premier League football club.
The Sunday Times reported yesterday that Belgravia, whose investments range from property to derivatives and which manages some £1 billion for wealthy investors, had made an approach.
The investment group said this morning that it is “examining the potential opportunity of acquiring Newcastle United”, however talks are thought to be at an early stage.
Newcastle United shares were trading up 5p at 66p at 1pm today.
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Belgravia is understood to have held talks with Sir John Hall, who controls 28.8 per cent of Newcastle United. He is the father of Douglas Hall, who owns a further 12 per cent.
The privately-owned group, with interests from asset management to construction and media, is also thought to be keen to buy the 28 per cent stake in the club held by Freddy Shepherd, the Newcastle United chairman. However he has previously rebuffed approaches for his stake.
Belgravia, which is run by Ron Mitchell and Duncan Hickman, two experienced fund managers, is understood to be planning to put aside a cash fund for the purchase of new players and as an indication of its commitment to the club’s success.
The approach is the second the club has received this year. Polygon, an American hedge fund, held talks with Sir John two months ago over a possible offer for the club. However it is thought the group is no longer interested in doing a deal.
The Belgravia move is the latest example of outside investors buying their way into large football clubs.
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Malcolm Glazer, the US sports entrepreneur last June agreed a £790 million deal for Manchester United while Randy Lerner, the American owner of the Cleveland Browns, last week agreed a £62 million deal to buy Aston Villa.
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