Arab Group Agrees Man City Takeover Deal

Arab investment company Abu Dhabi United Group has agreed a deal to buy Manchester City from former Thai Prime Minister Thaksin Shinawatra.

Thaksin has signed a memorandum of understanding with Abu Dhabi United Group which would see the Arab company taking a majority stake in the club.

The financial details of the deal are not known although Thaksin will be looking to recoup the £81.6m he paid over 12 months ago for the controlling stake in the club.

The deal will see Thaksin, who has been under increasing pressure after facing corruption charges in his home nation of Thailand, become honorary chairman of the club and retain a shareholding.

ADUG frontman Dr Sulaiman Al-Fahim has promised to turn City into a top-four club within three seasons.

Al-Fahim, who has made his fortune from property development, commented: ‘I like to have a challenge and looked at Manchester City as a club where you can add a lot and make them into one of the top four clubs.’

The new owners, pending the finalization of the takeover, have already flexed their financial muscles by signing Brazilian winger Robinho from Real Madrid for £32.4m in a last minute deal prior to the close of the transfer window.

Al-Fahim said ADUG, the financial arm of the Abu Dhabi royal family, would now have ‘all management rights’ over City, while Thaksin would become honorary president of the club ‘without any administrative responsibilities’.

The statement also said City would qualify for the Champions League in the 2009/10 season.

While ADUG has only signed a memorandum of understanding – essentially a gentleman’s agreement – with City. the Middle East company wants to completely buy out the club.

City added: ‘A period of due diligence for all parties, including the Football Association and Premier League has now been entered.’

Thaksin’s situation has been increasingly untenable after his Thai assets, believed to be worth about £800m, were frozen until the charges against him are resolved.