Gooners rocked as Dein sells shares to Russian oligarch
By Myles Palmer
Chairman Peter Hill-Wood said earlier this year that Danny Fiszman would never sell his shares unless he got "really brassed off."
On Thursday I heard that a "briefing " would be given by David Dein somewhere in Camden.
Sure enough, Dein announced that he has sold his 14.58% stake for £75 million to a company jointly owned by the Russian billionaire Alisher Usmanov and Farhad Moshiri, a London-based investor. The company, Red and White Holdings, will have Dein as its chairman. Additional funds have been committed to buy more Arsenal shares, although Dein insists there is no "current intention" to try to take over the entire club.
So 26.79% of AFC is now owned by a US billionaire and a Russian billionaire.
Dein has sold to an oligarch. The directors did not want to sell to Stan Kroenke, a nice, sensible basketball player from Missouri, so they kicked out David Dein, who has now sold his shares to an oligarch. One imagines that Danny will be brassed off. He will now regret removing Dein from the board.
What will happen now? Is it all over for the present Arsenal board ?
The Russians are serious investors with huge financial clout and a plan which probably includes controlling world football by owning Arsenal and Chelsea.
This shock development suggests that Dein has burned his bridges with Stan Kroenke, who cannot now gain control, so Kroenke's 12% will be for sale to the highest bidder.
The hedge funds could come under serious pressure from the new investors in their other businesses if they get in the way. So Lansdowne Partners may be forced to play ball. The Arsenal board hold less than 50%. If they don't sell now, there may be no liquid market for their shares when they want to get out. Their investment bank advisers will be pressurising them to take the value on offer now.
The timing of the announcement, when Arsene Wenger is within a week of signing a new three-year contract, is interesting.