Billionaire Ashley buys out Hall as platform for Newcastle takeover

The owner of sportswear company Sport Direct International paid more than 55million for 55,342,223 shares at 100p each to take a stake amounting to approximately 41.6 per cent of the Tyneside club. The holding, purchased from Wynyard (Guernsey) Limited, Cameron Hall Developments Limited and Cameron Hall Developments Limited Executive Pension Scheme, represents those shares until now controlled by Metrocentre tycoon Sir John Hall and his family.

In a statement to the Stock Exchange, Ashley said: "I am delighted to have this opportunity to invest in Newcastle United. The club has a fantastic infrastructure, for which Sir John and the board must take much of the credit. I am pleased that Sir John has agreed to remain as life president of the club.

"Newcastle United has a wonderful heritage and the passion of its fans is legendary. I am sure that, like me, they are already excited about the prospects for next season under the new manager's [Sam Allardyce] stewardship."

Newcastle were quick to issue a response, saying: "The board of Newcastle United will meet to consider the offer shortly.

"Newcastle United share-holders are urged to take no further action at this stage. A further announcement will be made in due course."

Stock Market rules demand that, having acquired a stake of more than 30 per cent, Ashley now has to make an offer for the remaining shares, which he has done at the same price conditional on the acquisition of in excess of 50 per cent.

If he were to gain a 75 per cent holding, he would have control of the club and be able to delist it, at which point reaching 90 per cent ownership and the point where the offer becomes unconditional is almost inevitable.

However, with current chairman Freddy Shepherd holding a stake of around 29.8 per cent, that is by no means a foregone conclusion. Shepherd has shown little sign of wanting to sell up, despite Sir John and his son Douglas, still deputy chairman, entering into talks with interested parties in recent months.

The new development came out of the blue yesterday in comparison to the speculation which surrounded earlier interest in the club, and is perhaps in keeping with an intensely private man who has earned his reputed 1.9billion fortune away from the limelight.

As late as last week, Shepherd, who has insisted in the past he would not stand in the way of a "Geordie Abramovich", said: "It is a plc matter, but none of these talks came to anything because I am not selling.

"It is an impossible club to buy. If the Halls don't sell and I don't sell, there is no way anybody can buy this club."