Investors in Dubai and Qatar are once again being linked to a possible takeover of Arsenal Football Club, a leading team in England’s Premier League.
ArabianBusiness.com reported on 11
th
March that HH Sheikh Hamad bin Jassim bin Jaber al-Thani, a member of the Qatar royal family, and Chairman of the Qatar Investment Company, was keen to buy a 9.9% stake in the club from UK broadcaster ITV, which is thought to be keen to cash-in its asset.
However, the price asked by ITV of US$96m was thought to be too high.
In the past week, shares in Arsenal have rocketed by £900 to £6200 on rumours that a takeover is looming.Arsenal is the last Premier League club playing in the European Champions League that remains in English hands. Manchester United and Liverpool both have American owners and Chelsea is owned by Russian Roman Abramovic.
The dramatic rise in Arsenal’s share price seems to be entirely based on investors believing that a wealthy foreign company or individual is moving in for the club. The club was valued at only £40 million when it joined the Plus Markets Group “junior” stock market in 1995.
The club has enjoyed considerable success in the ensuing 12 years, and has built a new state-of-the-art stadium. But these factors do not account for the club’s value soaring to £385 million today, say experts.
Dubai International Capital, following its unsuccessful takeover of Liverpool Football Club, is believed by city anaysts to be in the frame for Arsenal, as is Qatar Investment Company and Russian billionaire Oleg Deripaska.
But a takeover will take time and effort to pull off for any investor, however deep their pockets. A majority of the club is controlled by three wealthy shareholders who are lifelong fans and have shown no desire to sell.
ITV is the most likely to sell its 9.9%, but any buyer of this stake would need to dislodge the other big three shareholders in order to trigger a full takeover bid.
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