Newcastle United takeover a step closer? GACP Sports & Joe DaGrosa latest

Newcastle United-linked GACP Sports and Joe DaGrosa have been bought out of their 10% stake in French outfit Girondins de Bordeaux.

Monday, 16th December 2019, 9:04 pm
Updated Tuesday, 17th December 2019, 10:34 am
US businessman, President of the GACP investment fund and new owner of the Girondins de Bordeaux football club, Joseph DaGrosa (R) poses after a press conference introducing the club's new president Frederic Longuepee (L) at the club's headquarters in Le Haillan, southwestern France, on November 8, 2018. (Photo by NICOLAS TUCAT / AFP)        (Photo credit should read NICOLAS TUCAT/AFP via Getty Images)
US businessman, President of the GACP investment fund and new owner of the Girondins de Bordeaux football club, Joseph DaGrosa (R) poses after a press conference introducing the club's new president Frederic Longuepee (L) at the club's headquarters in Le Haillan, southwestern France, on November 8, 2018. (Photo by NICOLAS TUCAT / AFP) (Photo credit should read NICOLAS TUCAT/AFP via Getty Images)

Official confirmation of King Street Capital Management’s buyout of the US investment firm came this afternoon, following weeks of talks between the two parties.

A statement on the club’s website reads: “GACP announces that it has concluded the agreement with King Street in the interest of the Club and that it wishes all the success to FC Girondins de Bordeaux in its future competitions.

“This agreement will allow FC Girondins de Bordeaux to guarantee stability and continue its ambitious path.”

Sign up to our daily newsletter

The i newsletter cut through the noise

Billionaire DaGrosa and GACP Sports have taken initial steps towards facilitating a takeover of Newcastle United and remain in regular contact with the club's hierarchy.

DaGrosa’s US investment firm – who are working with former Manchester United and Chelsea chief Peter Kenyon – opened a number of companies likely to be used as takeover vehicles. GACP NEWCASTLE INVESTORS (U.S.), LLC was incorporated in Delaware on October 8, following on from the setting up of GACP NEWCASTLE MANAGEMENT (U.S) LLC and GACP NEWCASTLE PARTNERS (U.S), LLC. The former launched on September 27, 2019 with the latter set-up on October 1, 2019.

Further to this ‘Newcastle Investors Ltd’ has been registered in the Cayman Islands, as well as ‘Newcastle Investors Ltd’ company name reserved on the Isle of Jersey company register.

The group circulated a 46-page brochure circulated to press last month.

As stated on page 35 of the brochure ‘GACP Newcastle Investors Ltd (Isle of Jersey Company)’ would be the vehicle used to bring investment into the model from outside the of the U.S.

‘GACP Newcastle Investors Ltd (Cayman Limited Company)’ is to be used for investment from America.

The next step in the group’s proposed takeover would be to set up ‘Newcastle Acquisition Partners Ltd’ in the UK. Details of this potential venture are yet to appear on Companies House.

It is at the ‘Newcastle Acquisition Partners Ltd’ stage that Kenyon’s involvement comes in, with a 5% stake in the company and a proposed chief executive role likely, should any deal progress.

While the formation of this company in the US, and the developments from Jersey and the Cayman Islands as well as the sale of the stake in the Ligue 1 outfit does not guarantee a takeover - or even that a deal is close - it does at least prove that GACP and Peter Kenyon are continuing to press on with their plans.

The group are reportedly eyeing a £300million buyout of the Magpies, with the deal stretched out over three years.