The Daily Mail is reporting that BZG is seeking debt financing to fund a deal to takeover Newcastle United.
However as we have suspected since the group used Peter Redding to issue a statement on the deal’s progress, the takeover is basically at a standstill.
The reason for this roadblock seems to be due to the finances of the Bin Zayed Group.
This is what Ben Harrington is reporting about the deal being on hold for the moment.
Sources close to the situation said talks between Bin Zayed and Ashley’s representatives had been put on ice.
But Bin Zayed is thought to have appointed accountants from KPMG and lawyers from Pinsent Masons to work on a deal.
This would explain BZG’s connection to Pinsent Masons when they set up the holding company Monochrome Acquisitions Ltd.
@NUFC360 'Monochrome Acquisition Limited' incorporated today and registered to the address of 'Pinsent Masons LLP', who have been Ashley's law firm of choice. The only two directors? Sheikh Khaled and his lawyer Midhat Kidwai. #NUFCTakeover pic.twitter.com/fWEcCVle8H
— Alex Taylor (@alcxt) June 5, 2019
It also lends credence to the reporting of Keith Downie who said the following last week:
What I will say, though, is that I have serious reservations about the proposed Bin Zayed group takeover.
It’s my understanding that, despite their claims, they have still not submitted proof of funds.
They say they have submitted all of the paperwork, but that’s not what I’m hearing.
The word I’m getting from a number of sources is that they don’t have the money to buy the club.
I do think their interest is genuine and there have been talks, but I think the reality is that they don’t have the funds to complete the takeover.
It looks as if the Bin Zayed Group are still trying their best to takeover Newcastle United. However, the reports of them not having the funds may be closer to the truth than the reports coming from their camp.
This is what Ben Harrington writes about BZG’s attempts at seeking financing for a takeover of Newcastle.
An American hedge fund backed by Japanese investment giant SoftBank has been holding talks with the Dubai-based Bin Zayed Group which is interested in buying Newcastle United Football Club for between £300 million and £350 million.
It is believed Fortress Investment Group is one of a number of parties talking to Bin Zayed about providing expensive debt financing for a takeover of the Premier League club, owned by retail tycoon Mike Ashley.
What all this means is that there is still hope of a Bin Zayed Group takeover. However, this doesn’t appear as rosy as reports in May suggested.
We now have our doubts about this group and the reports of them as time-wasters is looking to be somewhat accurate. While their intentions may be good, we are uncertain of their capability to buy Newcastle United.
Though if BZG are able to go through with the takeover by securing investment, we would certainly be willing to give it a go under them over Mike Ashley.
While they may end up being less than optimal owners, that is still an uncertainty. While Mike Ashley is certainly a terrible owner.