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Arabs eye £500m Liverpool buy-out

ali

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ali

ali

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Arabs eye £500m Liverpool buy-out

 

 

Duncan Castles and Richard Wachman, City editor

Sunday January 13, 2008

The Observer

 

Liverpool FC could change hands for the second time in a year as their American owners encounter difficulties in refinancing £350million of debt incurred in taking over and running the club.

 

Beset by the steeply rising costs of a new stadium and manager Rafa Benitez's demands for new players, Tom Hicks and George Gillett Jr have been attempting to transfer the debt, for which they are personally liable, on to the club itself. City sources believe this is an extremely difficult task to complete before the loan's due date at the end of February.

 

It is possible that the Americans will meet the deadline, but if not an Arab investment group, Dubai International Capital, is understood to be close to lodging an offer to buy out the American pair, probably for about £500m. Takeover discussions are thought to be due before the end of this month.

 

If successful, DIC, led by Liverpool supporter Sameer Al Ansari, would invest heavily in two areas: the new stadium that Liverpool need if they are to compete with Arsenal and Manchester United for matchday revenue, and an improved playing squad. Were they also to acquire a new management team Jose Mourinho, who is known to be interested in managing Liverpool, would be a prime candidate.

 

DIC were extremely close to buying Liverpool last February, only to lose out to Hicks and Gillett when the club's chief executive, Rick Parry, switched his support from the Arab camp to the American. The latter paid £174.1m for a 100 per cent shareholding, also agreeing to take on the club's then debt of £44.8m.

 

The purchase, however, was funded solely with borrowed money, Hicks and Gillett's loan from the Royal Bank of Scotland swelling to £350m as it was used to fund several high-profile summer transfers, development work and architect's plans for a 60,000-seat stadium in Stanley Park, and to roll up the interest on the debt.

 

The RBS loan is due for repayment next month. The Observer understands that attempts to restructure it have so far failed and the Americans have yet to inject new equity into the refinancing.

 

While RBS have asked Hicks and Gillett to each commit £20m of their own cash to the deal, City sources believe that at least one of the pair is not prepared to do so. Hicks and Gillett declined to comment last night.

 

Meanwhile, work on 'New Anfield' has been held up by the impasse over the acquisition loan, with no chance of funding being put in place for the £400m stadium project until the issue is resolved. A meeting in New York last week at which architects HKS and AFL presented competing stadium designs, was described by Parry merely as 'another big step forward to finding the best possible solution. Everyone is reflecting on what they have heard and a clear decision will be taken soon'.

 

The global credit crunch has made it harder for Hicks and Gillett to raise new revenues elsewhere and also affected the value of their other assets. Should they fail in their efforts to repay the £350m acquisition debt on Liverpool when it comes due in just over six weeks, there would be the possibility of the next owner of the club becoming RBS.

 

The bank, however, are extremely unlikely to allow the situation to develop that way. Nor are Parry and club honorary life-president David Moores, the former principal shareholder. Parry and Moores are horrified that the Hicks-Gillett deal has not thus far brought long-term financial stability to the club. As a consequence, there are increasing tensions between the Americans and other board members as the refinancing deadline approaches. Parry and Moores are understood to be open to a second takeover.

 

Sources in the Middle East have confirmed that DIC remain as keenly interested in buying Liverpool as they were one year ago. DIC last night refused to comment on the matter, but they appear best placed to resolve the financial problems affecting the club's competitiveness in the Premier League. A mooted valuation of £1billion has been ridiculed, but an enterprise value of around half that figure might prove acceptable, allowing the Americans to exit with a profit of £75m each.

 

:yes:

Guest JV

Guest JV

Posted
Posted (edited)
fantastic if true but is there anything in there that is more than speculation ?

No.

 

We are DOOOOOOOOOMMMMMMMMMMEEEED

Edited by JV
Cobs

Cobs

Posted
Posted

makes you wonder why the DICs didn't get involved in a bidding war with the yanks in the first place - could have saved themselves £100m

mathewbet1

mathewbet1

Posted
Posted

75m profit (each) for no investment and general financial mismanagment? Not bad work if you can get it. Maybe steadler and waldorf arnt as stupid as they appear!

 

 

I have to question if DIC would pay 500m when they could have had us for half that ammount 12 months or so ago. Still if these reports are to be belived then I would welcome DIC and the Sheik with open arms.

Dule

Dule

Posted
Posted

I cannot believe that these two f8ckheads could actually be making any money out of this. Before anyone starts to support them do not bother, because they have not lived up to any promises, and the majority of that 50m that they invested was recouped in player sales.

 

If the two f*****s had any decency they would come out and f***ing be honest for once in this whole entire f***ing joke of a takeover. Ill admit i was fooled by there charm and charisma, but in all honesty i am sick to my f***ing teeth with people that are just in this for the money.

 

This takeover was meant to bring good times and stability to a club that has long deserved it. In the last 5 months all they have done is create an uncertainty around the club and playing group which i honestly feel is starting to show on the pitch. The quicker they f*** off, the quicker we can get back to improving as a club and improving our trophy cabinet.

Guest JV

Guest JV

Posted
Posted
what ?

News is too good to be true., must be speculation.

Guest Si

Guest Si

Posted
Posted
Have you got a link? Can't see this on the Guardian website.

 

dont think the guardian print observer articles do they?

stressederic

stressederic

Posted
Posted
dont think the guardian print observer articles do they?

 

Yep usually have them on their website. Even if I'm looking in the wrong place, it has to have come from somewhere on the internet.

Sir Tokyo Sexwale

Sir Tokyo Sexwale

Posted
Posted

A mate of mine was poached from the RBS by DIC & has set-up their UK operation. He was involved in the original LFC deal - he was running the deal on DIC's behalf through the RBS.

 

He's said nothing to me & he told me plenty about it before. I'll speak to him on Monday, but I really doubt it's anything more than speculation as I was talking about the original deal with him when I last saw him on 21 Dec.

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