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Vale board question Chaundry takeover proposal

Port Vale Football Club’s board has expressed their concerns that Mo Chaundry’s takeover could leave the club with significant debt.

According to The Sentinel, the millionaire businessman submitted a proposal in December but according to Vale it could allow Chaundry to acquire the club without purchasing new shares, costing around £593,000 for a 51 per cent stake with the money going to shareholders as opposed to the club and meaning further investment into Vale form Chaundry would be in loans.

Chaundry has denied this and insisted he will make an initial £1.2m investment into the npower League Two side.

Vale solicitor Paul Bennett, of law firm George Green, said:  "If Mr Chaudry regards it as a long-term investment then why is he proposing debt rather than equity?

"Any debt will need to be repaid, but can the club service a significant increase in debt?"

But Chaundry insisted that he will put the club into a stronger financial position.  "If I put in £1.2m to £1.3m in shares, this would still be four times more than the collective investment that the board has put in," he said.

Chaundry received support in his takeover from Vale fan and professional darts player Phil Taylor back in December, stating: “Mo is a very good businessman. He's a self-made millionaire and would make every effort to help the club move forward."

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