Scarborough Group International

Sheffield United's plc board is considering an offer from chairman Kevin McCabe's company Scarborough Group Holdings to take control of the club.
 

McCabe has formally launched a bid through Scarborough Group Holdings which could see Sheffield United returned to private ownership, although no formal offer has been made for the remaining shares.

The proposal from Scarborough included an equity fundraising for the club and that Scarborough would make a cash offer for all the remaining shares.

McCabe took his share ownership above 75% last week, triggering an option for him to force a return to private ownership.

A statement from Sheffield United said: "Upon the offer being declared wholly unconditional, it is the board's understanding that Scarborough will seek to delist the company from AIM and to re-register the Company as a private company.

"Delisting will substantially reduce the annual costs incurred by the company although Scarborough has proposed that an annual meeting of past shareholders should be called for the foreseeable future."

The proposal also plans to separate the club's property interest from the football side to guard against problems in the commercial property market.

Sheffield United said discussions between the two parties were at an early stage and no formal offer had been made.