DIC, Welcome to Anfield, the home of Liverpool FC

[AFII]

I hope that you will make us great again and bring home number 19 and many more titles.

I also hope that you will be able to buy the remaining 51% so you can run the club the way you want.

You now own 49% of the best club on the planet.

[kurtangle01]

They don't own anything...yet!

It's only on when Tom Cannon confirms it!!

[AFII]

They don't own anything...yet!

It's only on when Tom Cannon confirms it!!

Ok

[Leyton388]

So can we expect a big investment in the team this summer or not so much as they only own 49%? Think they will go into this partnership knowing quite well hicks will be strapped for cash pretty soon.

[Harv]

it hasnt been confirmed yet has it?


Hopefully they still spend a bit in our team......which would leave Hicks not being able to match their spending...thus forcing him to concede defeat

[Milan_Milan]

Source? Nothing on BBC or Sky Sports website.

[MascheredUp]

Source? Nothing on BBC or Sky Sports website.

He read it on Tribull.

[El Jefecito]

http://www.timesonline.co.uk/tol/sport/football/premier_league/liverpool/article3498960.ece

DIC and Hicks reach power sharing deal for Liverpool

Oliver Kay

Liverpool were last night preparing to enter an uncertain period of coalition ownership after Dubai International Capital (DIC) agreed a deal to buy 49 per cent of the club, with Tom Hicks securing the additional 1 per cent that he needs to earn majority control.

George Gillett Jr, who bought Liverpool with Hicks just 13 months ago, has agreed to sell his 50 per cent share in the club, but, rather than sell the entire stake to DIC, he will sell 1 per cent of the company to Hicks. The deal allows Hicks to assume majority control, although DIC, the private-equity investment arm of the Dubai Government, remains confident that it will ultimately buy him out.

The compromise agreement, which will be finalised at a meeting in Dubai next week, was accepted by DIC last night after talks between Amanda Staveley, its representative in London, and lawyers for both Hicks and Gillett. In a statement last night Staveley said: “Subject to renegotiation of a partnership agreement and subject to the stringent minority shareholder protection rights we would be prepared to accept a 49 per cent shareholding in Liverpool FC. This arrangement provides the best possible solution to the situation and would be in the best interests of the club and their loyal fans.”

Liverpool’s supporters are likely to have mixed feelings about the partnership, which some Anfield officials had described as a “nightmare scenario”. In theory it means that Hicks will call the shots in the boardroom, but DIC is determined to exert its influence, having indicated that it will conduct a review of all aspects of the club. Staveley, a senior partner of the PCP private equity firm, and Sameer al-Ansari, the chief executive, are expected to be among those joining the board, with Gillett and his son, Foster, likely to depart.

[carlton]

http://www.timesonline.co.uk/tol/spo...cle3498960.ece

DIC and Hicks reach power sharing deal for Liverpool

Oliver Kay

Liverpool were last night preparing to enter an uncertain period of coalition ownership after Dubai International Capital (DIC) agreed a deal to buy 49 per cent of the club, with Tom Hicks securing the additional 1 per cent that he needs to earn majority control.

George Gillett Jr, who bought Liverpool with Hicks just 13 months ago, has agreed to sell his 50 per cent share in the club, but, rather than sell the entire stake to DIC, he will sell 1 per cent of the company to Hicks. The deal allows Hicks to assume majority control, although DIC, the private-equity investment arm of the Dubai Government, remains confident that it will ultimately buy him out.

The compromise agreement, which will be finalised at a meeting in Dubai next week, was accepted by DIC last night after talks between Amanda Staveley, its representative in London, and lawyers for both Hicks and Gillett. In a statement last night Staveley said: “Subject to renegotiation of a partnership agreement and subject to the stringent minority shareholder protection rights we would be prepared to accept a 49 per cent shareholding in Liverpool FC. This arrangement provides the best possible solution to the situation and would be in the best interests of the club and their loyal fans.”

Liverpool’s supporters are likely to have mixed feelings about the partnership, which some Anfield officials had described as a “nightmare scenario”. In theory it means that Hicks will call the shots in the boardroom, but DIC is determined to exert its influence, having indicated that it will conduct a review of all aspects of the club. Staveley, a senior partner of the PCP private equity firm, and Sameer al-Ansari, the chief executive, are expected to be among those joining the board, with Gillett and his son, Foster, likely to depart.

[-V-]

Oh dear god. Partnerships are never good. The last 1 was bad enough, now we have 2 totally opposite parties owning the club. FFS

[Fiddy]

Oh dear god. Partnerships are never good. The last 1 was bad enough, now we have 2 totally opposite parties owning the club. FFS

An Arab-American partnership no less

[WILF]

I don't see how this can be workable. I presume that DIC feel confident that they can buy Hicks out fairly soon and take full control of the club
Here's hoping

[DaHongDe]

So how will it work in practice? Say for example DIC want to inject a further £49m (for players, loans repayments etc), does Hicks have to inject a further £51m in order to maintain his 51/49 majority? Or would Hicks' power be diluted once DIC decide to inject money into the club?

[MosRay]

I don't see how this can be workable. I presume that DIC feel confident that they can buy Hicks out fairly soon and take full control of the club
Here's hoping

When a minority investment is made there is usually a Shareholder Agreement drawn up. This may be just five lines, or it could be five pages. Such an agreement often sets out basic rules about the treatment of minority shareholders to ensure they are not just ignored (perhaps rights to appoint a board member if they hold a certain percentage of stock, pre-emption rights, etc.); as well as basic rules about how the directors of the company will run the company (monthly board meetings, not taking on Loans without approval, etc.).

The shareholder agreement has also got to be balanced and ensure that minority shareholders do not have disproportionate rights or the rights to be generally obstructive either.

Also a minority shareholder can influence, or perhaps even have the right of veto if the Shareholder Agreement is set out as such.

So I feel Dic know all to well what they are entering into.

The way I see it Wilf, is that this is a marriage of convienence and short term.

Convienece because Hicks needs LFC in his portfolio, due to other unfinished financial business with His American Sports stock. He has to be seen as the figure-head at Liverpool to complete the aformentioned...

He is also very well connected to HKS and it is in his interest to see Our New Stadium get started...

Once these major hurdles are finalised Hicks will hand the reigns of power to DIC, as agreed at the time of buying out Gillett and setting out the new owners agreement.

[WILF]

When a minority investment is made there is usually a Shareholder Agreement drawn up. This may be just five lines, or it could be five pages. Such an agreement often sets out basic rules about the treatment of minority shareholders to ensure they are not just ignored (perhaps rights to appoint a board member if they hold a certain percentage of stock, pre-emption rights, etc.); as well as basic rules about how the directors of the company will run the company (monthly board meetings, not taking on Loans without approval, etc.).

The shareholder agreement has also got to be balanced and ensure that minority shareholders do not have disproportionate rights or the rights to be generally obstructive either.

Also a minority shareholder can influence, or perhaps even have the right of veto if the Shareholder Agreement is set out as such.

So I feel Dic know all to well what they are entering into.

The way I see it Wilf, is that this is a marriage of convienence and short term.

Convienece because Hicks needs LFC in his portfolio, due to other unfinished financial business with His American Sports stock. He has to be seen as the figure-head at Liverpool to complete the aformentioned...

He is also very well connected to HKS and it is in his interest to see Our New Stadium get started...

Once these major hurdles are finalised Hicks will hand the reigns of power to DIC, as agreed at the time of buying out Gillett and setting out the new owners agreement.

Thanks very much for the explanation MosRay

As you say DIC surely know what they are getting into and how to progress as minority shareholders.
Hopefully it will be a fairly short wait before they become full owners.
If Hicks and DIC can now provide some stability and hopefully major funds for the summer it will benefit the club after all the turmoil we have been through this season.