Stan Kroenke has made an offer to buy Alisher Usmanov’s entire shareholding in Arsenal for £550 million, valuing the club at £1.8 billion.
It was reported last week that the Uzbek-born businessman was looking to sell his stake having grown frustrated at his lack of say in the club.
If the sale between the two men were to happen, then Kroenke would own 97.13% of the club’s shares, allowing him under current rules to compulsorily purchase all remaining shares and take the club private.
A statement from KSE reads:
KSE, UK, Inc. (“KSE”) is pleased to announce the terms of its all-cash offer to acquire the entire issued and to be issued ordinary share capital of Arsenal Holdings PLC (“Arsenal”), other than the Arsenal Shares already held by KSE (the “Offer”).
— KSE, a Delaware corporation wholly-owned by Mr E. Stanley Kroenke, currently holds 41,743 Arsenal Shares, representing approximately 67.09 per cent. of the existing issued share capital of Arsenal.
— KSE has received an irrevocable undertaking from Red and White Securities to accept the Offer in respect of Red and White Securities’ entire holding of 18,695 Arsenal Shares (representing approximately 30.05 per cent. of the existing issued share capital of Arsenal, and approximately 91.31 per cent. of the Arsenal Shares not currently held by KSE) as soon as possible following the publication of the Offer Document and in any event by 3.00 p.m. today.
— The Offer is conditional only upon KSE receiving valid acceptances representing not less than 90 per cent. of the Arsenal Shares to which the Offer relates (being the Arsenal Shares not held by KSE). Therefore, upon the valid acceptance of the Offer by or on behalf of Red and White Securities, the Offer will become unconditional as to acceptances and unconditional in all respects.
— Under the terms of the Offer, which will be subject to the Acceptance Condition and further terms set out in Appendix 1 to this Announcement and the full terms and condition set out in the Offer Document, Arsenal Shareholders will be entitled to receive:
For each Arsenal Share GBP29,419.64 in cash
— The Offer values the entire issued share capital of Arsenal at approximately GBP1.8 billion.
— The successful implementation of the Offer will result in the opening of a new chapter in the history of the Club in bringing 100 per cent. private ownership by KSE. KSE believes moving to private ownership will bring the benefits of a single owner better able to move quickly in furtherance of the Club’s strategy and ambitions. KSE is a committed, long-term owner of the Club.
— Arsenal Shares will be acquired pursuant to the Offer fully paid with full title guarantee and free from all liens, equities, charges, encumbrances, options, rights of pre-emption and any other third party rights and interests of any nature and together with all rights now or hereafter attaching or accruing to them, including voting rights and the right to receive and retain in full all dividends and other distributions (if any) declared, made or paid from Completion.
On the bid, Kroenke says: “We at KSE are moving forward with this Offer leading to 100% ownership of the Club. We appreciate Mr Usmanov’s dedication to the Arsenal Football Club and the storied ethos and history the Club represents.”
More to follow…