Levy buy-out strengthens grip on Spurs

Tottenham chairman Daniel Levy today became the sole director of the club’s majority shareholders following the £40.3m (€58.3m) cash-buyout of ENIC by Kondar Limited.

ENIC are the holding company for a number of interests in sport, gaming, media and entertainment, and took a 29.8% stake in Spurs during December 2000 at a cost of £22m (€31.8m) from Alan Sugar’s personal 40% holding.

The company also has shares in Rangers as well as European sides AEK Athens, FC Basle and Slavia Prague.

However, a drop in revenue from broadcasting rights and the collapse of the transfer market has caused an uncertain future for investment in the football sector.

As such, the company’s independent directors did not feel it appropriate to continue to commit ENIC’s cash resources without offering the shareholders the chance for return on their investment.

While Kondar – formed in October 2002 for the purpose of making the offer - have no plans to dispose of the holding in Spurs, they will begin a rationalisation process of which ENIC interests they do not wish to continue to fund.

Levy, 41, who is also managing director of ENIC, said: “This offer presents ENIC shareholders with a good opportunity to realise their investment for cash, with certainty, at a very substantial premium to the share price prior to the announcement that discussions were taking place.”

The share price of Tottenham Hotspur plc has declined significantly since ENIC acquired their stake and chairman Stephen Davidson added: “The independent directors believe the offer gives ENIC shareholders an opportunity to realise their investment at a fair and reasonable price and at a time when prospective investment in the football sector carries a high degree of risk.”