DIC latest - the largely wild speculation thread

[Sarb]

DIC claims deal to buy 49 per cent of Liverpool is done
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By Ian Herbert
Saturday, 8 March 2008

Dubai International Capital claimed late last night that it had struck a deal with Liverpool's two American owners which would see the Arab consortium take a 49 per cent stake in the club, with a view to total ownership in the long run.

Amanda Staveley, DIC's chief negotiator, told The Independent that, after a day of more intense negotiations, the consortium had convinced both Hicks and Gillett that it had the financial means to enable the club to build a new stadium and that it would be purchasing all but 1 per cent of the half share in the club, held by Gillett.

"All parties have now reached agreement, Tom Hicks knows that in the long run we will be 100 per cent owners of the club but we are prepared to play a waiting game," Staveley said. "We will be able to pay the price for the financing of the club and construction of a new stadium."
The price agreed with Gillett is understood to be the one put to his advisers on Tuesday – one which will enable him to walk away with a £40m profit on his investment plus add-ons. Technically, under the terms of pre-emption rights agreement signed by Hicks and Gillett when they bought Liverpool, Hicks has three months from now to buy out Gillett. But it is understood that DIC may seek to buy out Hicks from those rights and enable an immediate deal. There seems to be a good prospect that Hicks will agree. "There is a good understanding between all parties," Staveley said.

The agreement comes at the end of week of high drama in which DIC appear to have succeeded in convincing Gillett, whose interest in the club has been cooling for weeks, that he would not find a better offer than the one put to him before a deadline DIC set for midnight on Tuesday. Hicks and Gillett bought Liverpool for £218.9m in March 2007, and each own 50 per cent of the club.

There have also been suggestions that Gillett has been ill – pneumonia has been mentioned – and therefore unable to attend negotiations on the sale of his shares, though this does not seem to be the case. He was well and discussing the issues with DIC yesterday.

The deal, as outlined by DIC, seems to offer Hicks what he wants – overall control of the club – though DIC's aim on Tuesday seemed to be that Hicks might settle for DIC owning 50 per cent and management control of the club. DIC was at pains to point out that the deal was reached in principle and subject to legal scrutiny.

Sources close to Hicks insisted last night that no deal had been concluded yet. There may be an opportunity for the parties' representatives to meet next week, said the source, within half an hour of speaking to Hicks. The source stressed that there were a number of other potential minority shareholders and that DIC did not represent the only option.

Most important bit in bold

[carlton]

It must have taken them all of 10 seconds to convince them they had the funds to build a stadium and fund the buy out of GG' half! They're a sovereign wealth fund after all.

[carlton]

Wasn't ShanksLegend the one slating CTR?

Maybe not slating him as such but he was saying that if something was going down at the club he would have to know about it due to his insider source.

[pezzzer]

the fact that dic (amanda) has come out and said that hicks knows that ultimately they will have full control of the club means everything is fine in my opinion.

it means that dic are as good as in charge and may have already set a price with hicks but due to his position with wanting to sell off some of his hicks sports shares he cannot go public with his sale at the mo, but is there in all but name.

Welcome D.I.C

[carlton]

the fact that dic (amanda) has come out and said that hicks knows that ultimately they will have full control of the club means everything is fine in my opinion.

it means that dic are as good as in charge and may have already set a price with hicks but due to his position with wanting to sell off some of his hicks sports shares he cannot go public with his sale at the mo, but is there in all but name.

Welcome D.I.C

Bit of a cheeky thing to say publicly but good on her. I wont believe it until Ansari or the Sheik himself are at Anfield holding up a scarf but things are looking good

[pezzzer]

Bit of a cheeky thing to say publicly but good on her. I wont believe it until Ansari or the Sheik himself are at Anfield holding up a scarf but things are looking good

i cant see ansari letting her say something as important as that with out vetoing it first, her statement is massive in terms of importance.

is this the first time there will be a no- tail in the boardroom then? i think its a good thing personally

[carlton]

i cant see ansari letting her say something as important as that with out vetoing it first, her statement is massive in terms of importance.

is this the first time there will be a no- tail in the boardroom then? i think its a good thing personally

One of El Gordo's senior executives is a chick too, Casey Shilts.

[G]

Here's my problem.

Hicks needs a majority shareholding in LFC because he's trying to sell shares in his sports portfolio,which includes LFC.So if he manages to sell some of his shares in his sports portfolio that would have to mean he would also be selling some of his shares in LFC as that is part of his sports portfolio.So if someone else owns shares in that they also have shares in LFC so How can DIC hope to buy them all off Hicks at a later date.

Unless of course they are the ones who Hicks is hoping will buy the shares in his portfolio

Also they must be planing to buy him out sooner rather than later.If they were to wait until after the stadium is built his share will be worth far more than now.

[AFII]

Here's my problem.

Hicks needs a majority shareholding in LFC because he's trying to sell shares in his sports portfolio,which includes LFC.So if he manages to sell some of his shares in his sports portfolio that would have to mean he would also be selling some of his shares in LFC as that is part of his sports portfolio.So if someone else owns shares in that they also have shares in LFC so How can DIC hope to buy them all off Hicks at a later date.

Unless of course they are the ones who Hicks is hoping will buy the shares in his portfolio

As long as they don't buy more than 10% then there is no problem. If DIC would buy another 41% and end up on 90% then the rest of the shareholders must sell to them.

[Darkon]

Good thing that Gillet is leaving and that DIC is getting in. They seem to have the finances to get forward and have great ambitions.

But most important to me, it finally settles this whole mess for a while. The uncertainty is gone untill the next refinancing and we can concentrate on 4th spot as well as the CL!

[G]

As long as they don't buy more than 10% then there is no problem. If DIC would buy another 41% and end up on 90% then the rest of the shareholders must sell to them.

Big risk though AFII on DIC's part.

How can they possible know how may buy what and how much of it.

[Darth Marty]

I just hope Hicks doesnt stay around long.

And its ruined my dream of a press conference where i can cry ntears of joy that DIC are our owners! In this case the ****ing ******* Hicks will likely be present too.

Im kinda happy but not 100%

[AFII]

Big risk though AFII on DIC's part.

How can they possible know how may buy what and how much of it.

It's more dangerous for Hicks. If he sells a part of his sport group that would include shares in Liverpool then nothing really stops DIC from buying them and then they would have the majority of the shares in LFC.

[Darkon]

http://www.liverpooldailypost.co.uk/liverpool-news/regional-news/2008/03/08/george-gillett-agrees-to-sell-his-liverpool-fc-share-to-dic-64375-20581441/

George Gillett agrees to sell his Liverpool FC share to DIC

Mar 8 2008
LIVERPOOL FC co-owner George Gillett last night agreed to sell his share in the club to Dubai International Capital.

The breakthrough came after DIC agreed to top up Gillett’s profit on his LFC investment from an instant £40m to a potential £80m, depending on future club success.

Crucially the terms of the deal would see 1% of Gillett’s holding in the club go to his American co-owner Tom Hicks for around £500,000, making the Texan the club’s majority shareholder.

DIC, owned by Sheikh Mohammed Al Maktoum, would agree to take on the £350m debt arranged by the Americans in a controversial re-financing deal earlier this year.

Last night’s agreement would value Liverpool FC at £430m, rising to a maximum £510m if the future profit sharing clauses were triggered.

The potential additional £40m Gillett could look forward to is contingent on Liverpool’s success both on the field and in financial terms – agreed targets would have to be hit. Lawyers are yet to thrash out the finer details of the deal which will now become dependent on the agreement of Tom Hicks.

Last night Amanda Staveley, of private equity group PCP who is representing DIC, said the company was willing to accept the minority holding at Anfield subject to certain conditions.

She said: “Subject to re-negotiation of a partnership agreement and subject to the usual stringent minority shareholder protection rights, we would be prepared to accept a 49% shareholding in Liverpool Football Club.

“We have decided this arrangement provides the best possible solution to the situation and would be in the interests of the club and their loyal fans.”

Gillett’s willingness to sell is a major step forward in concluding the power struggle which has so unsettled the Anfield club.

But fans will no doubt be concerned that Hicks, the leading target for their anger, would actually appear to be about to strengthen his hold at Anfield.

Last night George Gillett declined to comment on any agreement with DIC.

But one source stressed that the deal was “far from done” as Hicks will have to be convinced he can work with the Dubai consortium.

It is understood representatives of Hicks, stationed in Dubai, will meet with DIC next week for talks.

The valuation of the club has been the main sticking point in the potential sale, with the Americans previously insisting the club was worth up to £1bn.

The ability of the Americans to invest in the club, especially the new 71,000 seater stadium on Stanley Park, has been questioned following the £350m re-finacing of debt on the club.

The new stadium is an essential part of future profit projections, and the Americans have already had to order one re-design because of rising costs.

Allowing Gillett to have a slice of profits in future was seen as a way of wrestling his stake from his hands while allowing him share proceeds in years to come.

DIC are understood to be keen to get a “foot in the door”, opening up the possibility of buying out Hicks later.

However, sources close to the Texan last night said he had ”other options and other partners” to take a minority stake in the club if agreement could not be reached with DIC.

Hicks believes he and Gillett effectively have a veto over the other should either decide to sell their stake and has made it clear he is prepared to use his veto.

The relationship between the pair has soured in recent months, to such an extent whereby the pair hardly talk now.

Gillett was originally seen as the senior partner in the relationship, bringing in Hicks with his financial muscle in order to outbid DIC for ownership last year.

However, Gillett was angered by Hicks’s public admission that Jurgen Klinsmann had been lined up as a potential replacement for manager Rafael Benitez.

When Hicks announced the controversial £350m refinancing deal in January, Gillett was so annoyed that he refused to put his name to the statement.

The pair bought LFC through their Kop Holdings Group in February last year but their “dream ticket” became a nightmare for fans when they loaded the club with debt.

Marked a bit in bold that I find interesting from the daily posts article...

So why are DIC taking on the debt, if they are only minority shareholder???

Furthermore, the article still seem to indicate that the deal is far from over. That Hicks and DIC still have to come to a working-agreement before the deal is settled.

Lastly, seems like Hicks might have minority shareholders lined up - but that could yet again be hot air from his side...

[G]

It's more dangerous for Hicks. If he sells a part of his sport group that would include shares in Liverpool then nothing really stops DIC from buying them and then they would have the majority of the shares in LFC.

Is he that stupid though.He's hardly likely to sell to anyone except someone he knows well because he'll still have to work with them as the majority shareholder.He's been in a position of extreme weakness with the credit crunch and yet still ends up getting his own way at LFC so he's obviously quite an astute businessman.