British investment firm looks to buy Newcastle United

LONDON: British investment firm Belgravia Group said on Monday it was considering buying Newcastle United, sending shares in the English soccer club up more than 11%. The statement from the Belgravia Group, based in the British island of Jersey, follows recent UK newspaper reports that Belgravia had approached the Tyneside club and initial discussions had already taken place. Belgravia’s interest comes a week after Newcastle’s Premier League rivals Aston Villa agreed to a £62.6m cash takeover by a group led by US billionaire Randy Lerner.

“The Belgravia Group confirms that it is examining the potential opportunity of acquiring Newcastle United, which may or may not lead to an offer for the company being made by Belgravia,” the company said in a statement. After the spurt is share price Newcastle United is valued at close to £96m ($181m).

Belgravia’s businesses include an ‘affinity marketing’ consultancy, which helps clients such as Everton, Arsenal, and Mastercard develop products such as football-club-branded credit cards.

Its other interests include telecommunications and media, construction and hospitality and aviation.A Belgravia spokesman said it was in ‘the very, very early stages of discussions.’ He said the group, chaired by Duncan Hickman, had about $2bn of assets, mainly in its Belgravia Asset Management division. Newcastle United declined to comment.