Peace bids to push through share plan

Albion chairman Jeremy Peace has launched a new attempt to push through his controversial plans for reorganising shares in the Baggies.

Peace is trying again to complete a ‘consolidation’ of shares in the club that would force some smaller shareholders to increase their stake or sell their shares.

The Baggies chairman postponed the process a year ago amid objections from some shareholders.

But all shareholders will receive a letter on Monday outlining his intention to bring the scheme back to the table.

The chairman wants to consolidate sets of 10 existing shares into one new share in the company, meaning shareholders with fewer than 10 shares would need to take their stake up to 10 or sell their shareholding.

The scheme is likely to meet with resistance for a second successive year from shareholders who fear they could lose their shares at a knock-down rate.

The plan could theoretically see the chairman increase his own stake from his current 51 per cent to up to 62 per cent after he revealed he will buy any left-over shares.

Peace said: “For every 10 shares they will now have one share. People who have less than 10 will have the opportunity to round up their shares to double figures so that it becomes one share under the new structure.

“If somebody doesn’t want to buy any more shares but owns less than 10 then those shares will be offered for sale in consolidated form.

“If we have 2,000 shares that people don’t want they will become 200 consolidates shares and will be put out to tender to other shareholders.”

But the chairman will then buy up any unsold shares – a process that could take his stake in the club to anywhere between the current 51 per cent and 62 per cent.”

Shareholders will be charged £80 per existing share if they want to round up their shareholding to multiples of 10.

And that is the same price Peace will pay for any leftover shares at the end of the tender process, meaning each consolidated share will be valued at £800.

Smaller shareholders objected last year on the ground that their shares were under-valued under the proposed deal.

But Peace hopes that the plan will be given the go-ahead at the second time of asking at the forthcoming AGM.