Saudi Arabia is reportedly close to extending its presence in the global sports market with a £340 million (US$444.9 million) takeover of English Premier League football club Newcastle United, but a deal could yet be scuppered by its disclosure.
Saudi Arabia’s Public Investment Fund (PIF), the Kingdom’s sovereign wealth fund, is reportedly leading the bid, which is being brokered by Amanda Staveley, the Dubai-based financier who has been tied to previous takeover offers for Newcastle, currently owned by Mike Ashley, the British billionaire behind sportswear retail group Sports Direct.
News of the potential takeover was first reported by the Wall Street Journal on Saturday, January 25. The BBC, citing a source familiar with the talks, Monday stated negotiations are “advanced,” adding that Ashley has been talking to the PIF for several months.
The Guardian newspaper stated a shell company has been registered to aid the takeover, adding sources close to the deal claim they are now “90-per-cent certain” it will succeed. Staveley is said to be seeking a 10% per cent stake in Newcastle should a takeover succeed, and reportedly set up PZ Newco on January 6.
The Guardian stated PZ stands for Project Zebra, codename for the takeover, with the two listed directors being Staveley and her husband, Mehrdad Ghodoussi. The company would be utilised as a vehicle to transfer shares if any deal is finally completed.
Project Zebra’s vision for Newcastle is said to include a £200 million investment in the squad, but also regeneration of run-down parts of the city, a similar model employed by Abu Dhabi United Group following its 2008 takeover of Manchester City.
Full Content: The Guardian
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