By Paul Nicholson
August 1 – The acquisition of majority ownership of Premier League Southampton by Chinese construction business Lander Sports has hit a new roadblock, though it was probably always the same one.
With the deadline set by bankers UBS to complete the sale expiring today, the decision will be for Swiss owner Katarina Liebherrr to stick with Lander, to reopen the bidding for the club, or to even pull out completely.
Rumours yesterday were that the Chinese were still trying to get the money out of the country to complete the sale, but new information suggests that Lander chairman Jisheng Gao is still trying to raise the full £210 million to buy a majority 80% position in the club.
With political concern over large sums of Chinese investment money leaving the country to buy European football clubs, China’s government has cracked down on the permissions required for transfers, in particular from mainland China.
For Liebherr and UBS the irony is that by sticking with Lander they could have lost an alternative Chinese buyer who had the money ready and with an easier route to getting it to Liebherr. Those talks were believed to have come unstuck over Liebherr’s requirement to hold 20% of the club’s shares.
That Chinese buyer is now believed to have turned their focus elsewhere.
Gao indicated last week that the hold-up was due to Liebherr apparently having second thoughts on the sale. This now looks to be a smokescreen. It is not clear if Gao was trying to buy more time to raise the capital or manage expectations and PR damage around a deal that looks increasingly unlikely to get done.
Liebherr’s patience has been tested and UBS will be embarrassed that Lander has not managed to come through with the money after a number of warning over whether the money was really there or not.
The plus side for Liebherr is that if she instructs UBS to reopen the bidding for the club there are already understood to be new investors ready to get involved. While Chinese money may have dried up, the English club market is of real interest to US owners and at least one is known to be interested.
The stumbling block for any new investor is likely to be the retaining 20% held by Liebherr. Selling 100% will push the value of Saints above the £210 million valuation for the Lander sale. With West Bromwich Albion currently valued at £225 million, Liebherr would likely expect a premium on that.
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