Kroenke to increase his stake in Arsenal to 62%
Mon 11th Apr 2011 | Clubs Ownership
Arsenal’s majority shareholder, Stan Kroenke, will up his stake in the North London club to 62% after confirming his intention to make a cash offer for the shares owned by Danny Fizman and Lady Nina Bracewell-Smith.
In an announcement today, Arsenal revealed that KSE, the Delaware corporation wholly-owned by Stanley Kroenke, had made a cash offer to increase his stake in the club.
The offer will see KSE takeover Fizman’s 10,025 Arsenal Shares approximately 16.11% of the issued share capital of Arsenal along with Lady Nina Bracewell-Smith’s 10,448 Arsenal Shares approximately 16.79%.
Kroenke will pay £11,750 in cash for each Arsenal Share with the offer values the entire issued share capital of Arsenal at approximately £731 million.
Kroenke and KSE's currently control 18,656 Arsenal Shares (29.99%) and will now see his stake in the club rise to over a total of 39,129 Arsenal Shares or 62.89% of the issued share capital of Arsenal forcing an complete takeover bid.
Speaking of the takeover Kroenke said; "We are excited about the opportunity to increase our involvement with and commitment to Arsenal.
“Arsenal is a fantastic Club with a special history and tradition and a wonderful manager in Arsène Wenger. We intend to build on this rich heritage and take the Club to new success. I am delighted that Peter Hill-Wood has agreed to support us by continuing as Chairman.
“We especially wish to acknowledge and thank the Board, Danny Fiszman and the Fiszman family as well as Lady Nina Bracewell-Smith and her family for the confidence they have had in me over the past years and in allowing us to move forward in this more prominent role."
Peter Hill-Wood, Chairman of Arsenal, said; "The Board of Directors and I consider it a key responsibility to protect the ethos and spirit of the Club. Mr Kroenke, although relatively new to Arsenal, has shown himself to be a man who values and respects the history and traditions of this very special Club that we cherish. We are confident that he will be a safe custodian of its future.
“At this time of transition I would like to pay particular tribute to Danny Fiszman for his immense contribution. Danny's vision and drive led the relocation to our new stadium, an historic move which will benefit the Club and its many passionate fans long into the future.
The move by Kroenke to up his stake now leaves Arsenal’s other major stakeholder Russian billionaire Alisher Usmanov, with the decision as to whether to sell his 27% stake in the club. Usmanov had been increasing his own stake in Arsenal over recent months through his investment arm Red & White Holdings Limited.
It is unlikely that Kroenke will launch a bid to take 100% control of the club, however. Arsenal Supporters’ Trust (AST) owns approximately 11% of the remaining shares in the club. Established in 2003, AST now has more than 750 members who collectively speak for approximately 3% of the club’s equity.
It is understood that Kroenke, who is a supporter of fan involvement in the decision making process, will not seek to purchase the shares held by the group.
Manager, Arsène Wenger said; "I have worked with Stan Kroenke at board meetings over the past couple of years and I believe he has the best interests of Arsenal at heart. He understands the Club's heritage and traditions and our ambition to run the Club in a way which protects our long term future."
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