Ninth Floor (The) PLC
12 July 2001
The Ninth Floor plc ('Ninth Floor' or 'the Company')
Disposal of shareholding in Swansea City Football Club
The Ninth Floor today announces it has disposed of its 99.15 per cent
shareholding in Swansea City Football Club plc, the holding company of Swansea
City Football Club.
Mike Lewis, the current Chief Executive of Swansea City Football Club plc has
acquired the Ninth Floor shareholding for one pound and has undertaken to
repay loans outstanding to Ninth Floor in the sum of £801,098.
In addition Ninth Floor has paid £200,000 to acquire two freehold properties
owned by Swansea City adjacent to The Vetch Field ground. These two
properties, comprising the club shop and car park will be leased back to the
football club for a maximum of five years at an annual rental of £6,000. The
football club has the option to acquire the properties back at the greater of
fair market value or £200,000 within the next five years.
Subject to securing further funding within the next three months Swansea City
has agreed to secure the loans on contingent transfer moneys due from
Southampton on the transfer of two youth players last season and on the lease
for the football club's ground at The Vetch Field. In the event that no
security is put in place during this time The Ninth Floor has the option to
reacquire its shareholding for one pound.
In the event that Mr Lewis sells his shareholding in Swansea City Football
Club within two years, all outstanding loans will become due and Ninth Floor
is entitled to 20 per cent. of any profit on such a disposal.
The Ninth Floor originally acquired its shareholding in the in Swansea City
Football Club in August 1997 for the payment of £100 for shares and £500,000
for certain loans. These amounts have been fully written off in Ninth Floor's
accounts in prior years.
For the year ended 31 May 2000 Swansea City Football Club recorded a loss
before taxation of £1.282 million and at 31 November 2000 had net liabilities
of £136,000.
The Directors of the Company, having consulted with Seymour Pierce Limited,
believe that the terms of disposal are fair and reasonable insofar as the
shareholders of the Company are concerned.
Neil McClure, Joint Chairman and Joint Chief Executive of Ninth Floor said
'since we announced earlier this year our intention to dispose of our interest
in Swansea City we have been in discussion with a number of interested parties
and yet have only received one offer, from Mike Lewis. With our recently
announced acquisition of Applied Infrastructure Management Services Limited
and our new strategy of becoming an integrated support services group offering
Technology led Infrastructure Management solutions we were keen to conclude a
deal quickly which would remove the burden of future funding for the football
club from our shareholders.'
Enquiries:
Neil McClure
Joint Chairman and Joint Chief Executive of The Ninth Floor plc 0207 643 5300
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