Kroenke Agrees Arsenal Takeover Bid
American businessman Stan Kroenke has increased his stake in Arsenal Football Club to 62.89%, and has agreed to make an offer for the rest of the club.
Kroenke first became involved at Arsenal in 2007, buying 9.9% in shares, and a full takeover has now been triggered after Kroenke Sports Enterprises acquired the stakes of Danny Fiszman and Lady Nina Bracewell-Smith, who owned 16.1% and 15.9% respectively.
Arsenal’s shares have been priced at £11,750 and the club has been valued at £731m – however, with the club carrying debts of £147m, the club’s real worth can be put at close to £900m.
Most of the remaining shares left to purchase are held by Russian billionaire Alisher Usmanov, who does not have a seat on the Gunners board but owns 27% of Arsenal’s holding company.
The 63 year-old’s company, Kroenke Sports Enterprises, also controls the NBA’s Denver Nuggets, the NHL’s Colorado Avalanche, NFL’s St Louis Rams, and Major League Soccer side the Colorado Rapids.
Kroenke said: ‘We are excited about the opportunity to increase our involvement with and commitment to Arsenal. Arsenal are a fantastic club with a special history and tradition and a wonderful manager in Arsene Wenger’.
‘We intend to build on this rich heritage and take the club to new success. I am delighted that Peter Hill-Wood has agreed to support us by continuing as chairman’.
The Arsenal chairman Hill-Wood added: ‘The board of directors and I consider it a key responsibility to protect the ethos and spirit of the club’.
‘Mr Kroenke, although relatively new to Arsenal, has shown himself to be a man who values and respects the history and traditions of this very special club that we cherish. We are confident that he will be a safe custodian of its future’.
Fear that a takeover could load the North London club with more debt have been dismissed, a statement to the stock exchange said:
‘The offer will not be funded by way of any debt finance (banks loans, payment in kind loans or other debt or quasi-debt interest bearing obligations) for which the payment of interest on, repayment of or security for any liability (contingent or otherwise) will depend on the business of Arsenal’.
