Dubai International Capital's proposed takeover of Liverpool is being delayed by the attempts of one of the club's American owners to sell off a percentage of his sport businesses.
Tom Hicks is seeking an off-market placement of existing shares in Hicks Sports Group, which includes investments in Liverpool, the Texas Rangers baseball team and the Dallas Stars ice hockey franchise. Investment bankers JP Morgan have been advising on the 144A listing, which was first attempted in January but failed because of challenging financial market conditions. JP Morgan representatives are understood to have visited Liverpool in the last fortnight to work on the placement.
Hicks' current 50 per cent share of Liverpool is thought to be fundamental to the exercise. DIC's interest has helped the football club's value to rise during a period in which American companies with sporting assets have declined sharply in worth. While DIC would prefer to buy Liverpool in full, the Arabian investment group is currently concentrating its efforts on purchasing George Gillett's half share and establishing an agreement with Hicks that would allow it full control of Liverpool's day-to-day operations. Hicks has engaged in talks with DIC over a proposed management structure after the purchase.
Though it has been suggested that Hicks is attempting to raise funds to buy out Gillett and take total control of Liverpool, such a move would cost around £300million (£151m) in equity and loan guarantees. Hicks is not thought to have the resources to cover such a transaction, while his moves to place shares in Hicks Sport Group would effectively reduce his stake in Liverpool, making him a seller rather than a buyer.
Tom Hicks is seeking an off-market placement of existing shares in Hicks Sports Group, which includes investments in Liverpool, the Texas Rangers baseball team and the Dallas Stars ice hockey franchise. Investment bankers JP Morgan have been advising on the 144A listing, which was first attempted in January but failed because of challenging financial market conditions. JP Morgan representatives are understood to have visited Liverpool in the last fortnight to work on the placement.
Hicks' current 50 per cent share of Liverpool is thought to be fundamental to the exercise. DIC's interest has helped the football club's value to rise during a period in which American companies with sporting assets have declined sharply in worth. While DIC would prefer to buy Liverpool in full, the Arabian investment group is currently concentrating its efforts on purchasing George Gillett's half share and establishing an agreement with Hicks that would allow it full control of Liverpool's day-to-day operations. Hicks has engaged in talks with DIC over a proposed management structure after the purchase.
Though it has been suggested that Hicks is attempting to raise funds to buy out Gillett and take total control of Liverpool, such a move would cost around £300million (£151m) in equity and loan guarantees. Hicks is not thought to have the resources to cover such a transaction, while his moves to place shares in Hicks Sport Group would effectively reduce his stake in Liverpool, making him a seller rather than a buyer.
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