Liverpool’s proposed takeover by Dubai Investment Capital has collapsed after a board meeting at Liverpool failed to ratify the groups offer.
After weeks of seemingly missing out on buying Liverpool, the American investor George Gillett came back to Liverpool last week with an improved valuation for the shareholders, and crucially, he has had a change of heart on the stadium. It is believed his bid was initially rejected because he was in favour of a ground share between Liverpool and Everton. His new proposals are based around a new stadium to be solely used by Liverpool FC.
The Dubai Consortium were understandably angry that the Liverpool board last night failed to ratify their bid, and withdrew their offer for the club today. It is believed that George Gillett’s group has also nearly completed the process of due diligence and another board meeting will be convened in the next seven days.
Dubai Investment withdraws bid
The company said in a statement that it had “decided to end negotiations with Liverpool… about a possible investment in the club.”
It said a “comprehensive offer” had been accepted in principle by majority shareholder David Moores after the company, the investment arm of the Dubai government, had completed due diligence.
However it added that “it appears that the Liverpool Board and the majority shareholder David Moores were unable to approve these terms in order to allow DIC to make a formal offer to all shareholders.”
DIC executive chairman and chief executive Sameer Al Ansari said the company, who have been holding talks with Liverpool since early December, was disappointed to be making the announcement.
“We are very disappointed to be making this announcement. DIC is a serious investor with considerable resources at our disposal.””At the same time, we are supporters of the game and of the club. Liverpool’s investment requirements have been well publicised and, after a huge amount of work, we proposed a deal that would provide the club with the funds it needs, both on and off the pitch. We were also prepared to offer shareholders a significant premium on the market price of the shares. However, we will not overpay for assets.
“Liverpool is the most successful football club in English football history. It exists to win things for its supporters. It deserves to be in the hands of people who support it, who understand its history and legend and who share the enthusiasm and passion of its fans. As businessmen, we move on.
As fans, we hope that the new owners would share the same vision as we had for LFC and, of course, in realising the new stadium that is so badly needed to ensure the club can continue to compete at the highest level in the Premiership and Europe.”
It appears that David Moores valued the entire shareholding (of which he owns 51.5%) at £170 million, whereas DIC were to offer £156 million for this aspect of the club.
Has David Moores put his interest before that of the club?
Has the Gillett offer always been the more attractive, and now he has dropped his proposals for a ground share, it is now the preferred option?
Update @ 7pm: LFC have made the following official statement in response.
Liverpool Football Club has noted today’s announcement by Dubai International Capital.
The process of seeking new owners for the club is still underway and a decision on the future will be taken in the next few days.
Discuss this item in our LFC Investment topic in the forum, or post a response below…