London: American billionaire Stan Kroenke has struck a deal to take over Arsenal private by buying out Russian rival and minority investor Alisher Usmanov in a move that values the English Premier League (EPL) football club at around 1.8bn pounds (USD 2.3bn). The bid will be part funded by a 557mn pound loan from Deutsche Bank.
The deal comes at a crucial time for the north London club as it embarks on life without long-time manager Arsene Wenger who stood down in April after 22 years in charge.
It also brings an end to the standoff between the two tycoons, who had both battled for control, and enables Kroenke to squeeze out the independent shareholders who had used the annual meeting to lambast the board for not spending more on a team that last won the Premier League in 2004.
Kroenke, said in a statement to the London stock exchange that a single owner would be able to pursue its strategy more quickly.
Initially viewed with suspicion by the board, Kroenke started building up his position from 2007 as he slowly bought out the families who had run the 132-year-old club for generations.
He said Tuesday he had now received an irrevocable undertaking from Usmanov to sell his 30 per cent stake and would buy out the remaining independent shareholders at 29,000 pounds per share.
“Many of these (club’s) fans … hold their shares not for value but as custodians who care for the future of the club. Kroenke’s actions will neuter their voice and involvement”
Arsenal Supporters’ Trust