Fans at the Hawthorns have raised concerns after chairman Jeremy Peace took his shareholding in West Bromwich Albion past 50 per cent.
Peace has bought an extra 2,380 shares in West Bromwich Albion Holdings Ltd (WBAH), taking his overall holding from 48 to 50 per cent and triggering a mandatory cash offer for the outstanding shares.
Peace, who now owns 50.56 per cent of the club, paid £80 per share and has to make the same offer to the remaining shareholders, which values the club at £7.26 million.
Letters have been sent to shareholders, who are under no obligation to sell and have until October 9 to decide.
"I have acquired additional shares in WBAH at £80 per share and under the Takeover Code, because of the size of my pre-existing shareholding, my purchase has triggered a requirement to make cash offers based on the same price for the outstanding shares in both WBAH and West Bromwich Albion Ltd," Peace said in a statement.
"WBAH has a large number of small shareholders who have had no formal mechanism to realise value for their shares following the closure of the share-dealing facility in December 2006.
"These offers will give all existing shareholders the opportunity to receive cash for their shares should they wish to sell at this time."
Charles Cattaneo, financial adviser to Jeremy Peace, said: "WBA Holdings shares are no longer traded on any market, so if shareholders do not accept they risk being left holding illiquid shares in a company which Jeremy Peace controls, and because he now has over 50 per cent he will, once the offers close, be free to buy shares at higher or lower prices without being obliged to make a further offer to all shareholders."
But shareholders have raised concerns that the £80 per share offer significantly undervalues the club.
Independent directors Mark Jenkins, Joseph Brandrick, and Jeffrey Farmer, who have been advised by accountants Grant Thornton, said they were unable to recommend the offer and are were not accepting it themselves.
With 90,700 shares in circulation, the offer price values West Brom at £7.3 million - a 70 per cent discount to the net asset value of the club of £23 million in June.
One shareholder, who asked not to be named, said: "Most people have shares to show their emotional attachment to the club, and won't want to sell.
"This could be the start of the process to sell the club one day. Peace is a long-term player and a very clever. I won't be selling."
Meanwhile, Peace has announced he wants to consolidate the club's shareholder base - with ten shares being converted into one.
A meeting of the group Shareholders For Albion (S4A) will be held tomorrow to discuss the purchase.