Dangote denies reported bid for Arsenal stake

24th May, 2010



Nigeria's business mogul, Aliko Dangote, today denied media reports that he was considering buying a 16% stake in the English Premier League soccer club, Arsenal.

Aliko Dangote

Britain's Sunday Times newspaper and other media reported that Dangote had registered interest in buying a stake being sold by the club's fourth biggest investor, Nina Bracewell-Smith.

Lady Nina Bracewell-Smith is reported to be considering selling her 15.9 per cent stake in the club.

“I am a longstanding supporter of Arsenal Football Club and have been involved in conversations around investment in the past," Dangote said in a statement. “However, I can say categorically at this time that I have no intention of investing in the club and will not be acquiring a stake. I wish Arsenal Football Club the best for the future and will continue to follow the team as a fan.”



There are various reports that Bracewell-Smith has appointed United States' private equity firm, Blackstone Group, to find a buyer. A person familiar with the matter told Reuters earlier this month that eight to 12 parties were taking a detailed look at the club.

Left,kroenke.Right,Arsenal chairman Peter Hill-Wood

It should be noted that earlier this year, another Nigerian has bought Britain‘s 2nd largest airport.


EARLIER REPORT…As reported by Jonathan Harwood of The First Post @ 7:28 AM,earlier this morning,May 24, 2010.>>>


Dangote moves to take 16% stake in Arsenal

Nigerian billionaire could challenge Kroenke and Usmanov for control of the Gunners

The battle for control of Arsenal FC has taken an unexpected twist after the Nigerian industrialist Aliko Dangote, one of the richest men in Africa, entered the fray, by registering his interest in buying a 16 per cent stake in the club.

The billionaire businessman wants to purchase Lady Nina Bracewell-Smith's shares in the club. If he does so he will become the third biggest shareholder at the Emirates Stadium behind American tycoon Stan Kroenke and Uzbek oligarch Alisher Usmanov.


Emirates Stadium

Lady Bracewell-Smith announced last month she was selling her shares and appointed American finance house Blackstone to find a buyer. She could make as much as £160m in the deal.

If Dangote buy the shares it could prompt a takeover bid from either Kroenke or Usmanov. Arsenal's ownership rules state that if anyone takes a 30 per cent stake in the club they must then buy out all the other shareholders. At present Kroenke is just 17 shares away from triggering a bid for the club - he has a 29.98 per cent stake. Usmanov is not far behind on 26.29 per cent.

Kroenke has been upping his stake little by little in recent months - but neither he nor Usmanov have so far moved to take overall control of the club. But the appearance of a third player could prompt them to do so.

ARSENAL Vs BARCA,2006

Dangote is said to be worth $2.5bn, making him the third richest person of African origin in the world, behind Oprah Winfrey and Ethiopian businessman Mohammed Al Amoudi. The 52-year-old set up the Dangote Group in 1977. It grew from a small trading company to become Nigeria's largest industrial group, which also owns companies in Benin, Ghana and Togo.

He used political affiliations, particularly with the former President of Nigeria, Olusegun Obasanjo, to grow his business and he now controls most of the flour and sugar supply contracts in the country. He also owns Africa's largest cement plant.


* ADDENDUM

As reported by Jeremy Wilson of The U.K Telegraph: 6:30AM BST 25 May 2010.

Lady Bracewell-Smith suffers Arsenal auction blow as Aliko Dangote denies interest
Lady Bracewell-Smith’s difficulty in generating a lucrative auction for her Arsenal shares was underlined on Monday when Nigerian billionaire Aliko Dangote distanced himself from buying her 15.9 per cent stake.

There was immediate suspicion on Sunday from a variety of Arsenal sources that the public emergence of Dangote’s name was nothing more than a tactic to prompt other potential investors into action.

That theory gained momentum on Monday when Dangote, Nigeria’s wealthiest man, admitted past conversations about investing in Arsenal but emphatically denied he was currently buying any shares.

Despite being the fourth-largest shareholder, the problem for Bracewell-Smith is that her stake, which is worth around £100 million, does not materially change the balance of power at the club.

This is because Stan Kroenke, who owns almost 30 per cent, could remain in control by simply buying the stake of board ally Danny Fiszman even if the purchaser of Lady Bracewell-Smith’s shares forged a strategic alliance with Alisher Usmanov.