Claim made that ‘competing groups’ are looking to buy out Lindsell Train stake in Celtic

Yogi Junior has dropped a very interesting claim that competing groups are looking to buy out the Lindsell Train block of Celtic shares.

Interest in the shareholdings at the club is on the up as Dermot Desmond appears to wield unconditional power across the club.

According to the Celtic website Desmond owns 34.45% of the shares in the club.

Next up is Investment Fund Lindsell Train with a 16.14% stake in the club.

The London based firm first bought up shares in Celtic in 2006, apparently as part of a long term plan anticipating serious growth at an iconic European football club.

In 20 years involvement they have never made any sort of comment or requested a place on the Board of Directors.

Over the last year three different groupings have emerged with varying interests.

WHO ARE THE COMPETING GROUPS INTERESTED IN CELTIC SHARES?

Celtic Fans Collective are looking to create a voice for supporters, Celtic Supporters Limited are looking to buy shares and question the governance of the club while the Season Ticket Holders Alliance are looking to spent upto £10m in shares if they get the backing of 50,000 Season Ticket holders.

Building up towards Desmond’s 34.45% stake looks an ominous task but if Lindsell Train were to sell up the new buyers would be halfway towards that target.

Writing in his Son of Celtic blog Yogi Junior explains:

Celtic, in particular, offers little by way of predictable and foreseeable capital growth for shareholders. And it now seems like the stewardship of Desmond and his minions could have triggered a spiral of financial decline, as top-flight European football becomes elusive at best and a distant memory at worst.

Regardless, the lockstep vote with Desmond is under pressure. The entire shareholding must be under serious scrutiny at this stage. Will there be a consortium of Celtic-minded investors there to act when Train finally concedes to his investors?

As I understand it, that’s exactly what’s happening in the background. Competing groups are trying to put together a block bid for the Lindsell Train shares. An off-market deal to avoid tanking the share price.

If you find yourself unconvinced by any of the above, be assured of this point at least.

In June 2022, Nick Train and Michael Lindsell committed to seven years of further management of the funds. That takes them to ages 70 and 69 respectively.

It is highly unlikely that they will stay beyond that point in June 2029. There is a succession plan in place, but whatever the plan may be, continued losses won’t be part of it. And once your ideological centre has been removed, then more market-sensitive solutions will no doubt be the order of the day.

Having two or more interested parties would obviously push up the price of the Lindsell Train stock.

There are two other significant shareholders in the Celtic jigsaw.

Mark Keane who has recently been nominated to the Board owns 6.21% with Chris Trainer holding 10.98% of the shares.

If either of them were involved in buying out Lindsell Train there would be a serious player involved in Celtic.

While Desmond would remain the biggest individual shareholder any group owning 16% of more could demand places on the Board and would have the voting rights to call an EGM on any issue.

It is believed that around 20% of the shares in Celtic are currently dormant after being bought in the late nineties with the club losing contact with the owners.