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Billionaire Ashley poised to take over Newcastle United

Newcastle United are on the verge of a takeover by billionaire businessman Mike Ashley after club chairman Freddy Shepherd agreed to sell his shares to the tycoon on Thursday.

Shepherd will sell his share in the club for more than ?37 million (US$74 million), giving Ashley a stake of almost 70 percent.

Ashley needs a 75 percent stake to assume control, which would make a projected ?133 million complete buy-out almost inevitable.

The takeover would be a massive boost for the Magpies, who despite regularly playing in front of 50,000 fans have not won a major trophy since 1969.

Ashley emerged as a potential new owner when he paid Sir John Hall and his family ?55 million for their 41.6 percent stake last month.

On Thursday the Newcastle board effectively paved the way for the takeover, and Shepherd said the offer from Ashley's company, SJHL (St James Holdings Limited) "is at a level which fully reflects both the performance of Newcastle and its prospects and ambitions for the future."

Shepherd added: "The board believes that SJHL and Mike Ashley will be excellent custodians of Newcastle United's heritage and will provide the best possible opportunity for the club to flourish in the future, to the benefit of the company and its fans."

The recommendation came after SJHL lifted its bid to 101 pence per share for the club.

SJHL said on Thursday it has now received irrevocable acceptances from shareholders who represented some 28 percent of issued capital -- putting its total holding within a whisker of 70 percent.

Ashley is the founder and majority shareholder of the retailer Sports Direct International, which on Wednesday won promotion into the London stock market's second-tier FTSE 250 index.
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