December 11 – The battle for control of Arsenal has begun to heat up Uzbekistan’s Alisher Usmanov (pictured) increased his stake in the club.
Usmanov’s Red & White Holdings now have a 26.07 per cent stake in the Gunners after the Russia-based tycoon claimed more shares.
Stan Kroenke still remains the largest individual shareholder at the Premier League club after the American moved edged closer to the takeover threshold when he brought another 10 shares last month to move to 29.9 per cent.
Under the strict financial rules of the City, were anyone to cross the 29.99 per cent takeover limit, they he would be obliged to make a formal offer for the remainder of the shares at the highest price paid for stock during the past 12 months.
However, shareholders would not be forced to sell, and so after the offer had been made, if the party were not able to reach 50 per cent, then they could not return to make another takeover offer for 12 months, unless invited to do so by the company.
It has been suggested the continued investment by Kroenke – who is already an Arsenal director – is designed to fend off possible aggressive moves by Usmanov.
Lady Nina Bracewell-Smith, who left the board during December last year, could well hold the balance of power with her family’s 15.9 per cent stake – which if sold to either Kroenke or Usmanov would push them well past the takeover bracket.
Earlier this year, the Arsenal Board turned down Usmanov’s proposed rights issue to generate new cash, in favour of the status quo which sees the Emirates Stadium club remain self-financing.
The billionaire businessman, who has made his money in mining, lumbering and investment, had argued the scheme would help to reduce both the long-term debt of some £400 million, which is mainly associated with the new stadium, and also hand manager Arsene Wenger extra transfer funds.
But Arsenal chairman Peter Hill-Wood made reference to Usmanov’s proposal in his report to the shareholders.
He said: ”In the final analysis I believe it distils down to a decision about whether it is appropriate to raise money from shareholders to purchase the registrations and pay the wages of footballers.
“This is not something that Arsenal has ever done previously in its history and it would be at odds with our ethos of running the club as a business which is self-sustaining and pays its own way in the world.”
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