Lerner on brink of buyout

Randy Lerner is on the brink of completing a 100% buyout of Aston Villa, but he could face a nervous fortnight.

The American, who is thought to be worth in the region of £680m (€1bn) and already owns NFL side the Cleveland Browns, has provisionally secured 85.5% of shares in the Villa Park club.

However Villa pointed out that unless Lerner’s invstment vehicle Reform Acquisitions Ltd reach the 90% mark by September 18, the deal may hit the rocks.

In a statement, Villa said: “Supporters should be aware that the situation remains ongoing and that this announcement, whilst reflecting shareholder acceptance of 85.5%, does not constitute an end to the takeover process.”

They added: “RAL’s offer for the company remains conditional on 90% shareholder acceptance and the timescale for shareholders to return their forms of acceptance, along with their share certificates, has now been extended by RAL until 1pm, September 18.

“At this time, supporters should be aware that the existing board of directors, who recommended shareholders accept RAL’s offer, currently remains in place.”

Such has been the overwhelming support for Lerner’s takeover it seems implausible it should now collapse.

The 90% figure is significant because by reaching that mark Lerner would be able to compulsorily buy out all remaining shareholders.

Lerner had his £62.6m (€92.6m) offer for Villa gladly accepted by long-serving chairman Doug Ellis, who recommended it to shareholders. It amounted to 547 pence per share.

Such has been the speed with which Lerner has taken his provisional holding to its current level, it is apparent he has strong support.

RAL announced on August 14 the first closing date for Lerner’s offer would be September 4.

Under Stock Exchange rules, Lerner was obligated to provide an update today, when the extension was confirmed.

The 85.5% figure was accurate at 1pm Irish time yesterday, according to RAL, and it seems certain Lerner has since added more shares, taking him ever closer to the magical 90% figure.

There are several possible reasons why his current shareholding falls short.

Inevitably there will be some minor shareholders with reservations about foreign investment coming into the club, from a man who professes he is not a long-standing supporter.

However judging by the support Lerner has found since approaching Ellis and making a formal bid on August 14, such shareholders would appear to represent a tiny minority.

Lerner received a rapturous welcome at Villa Park prior to the match against Newcastle on August 27.

It is more likely that some shareholders have been slow to react to the share offer – at this time of year holidays may be a factor – but intend to sell.

Ellis remains the nominal chairman but after 30 years in that role, in two spells, he is ready to step aside, having found a man in whose hands he trusts the club.

The team have made a strong start to the Barclays Premiership season under new boss Martin O’Neill, which has encouraged supporters a bright new era has arrived.

Before today’s announcement, Lerner revealed he monitored events at Villa Park for more than three years before buying, but admitted it was not a “lifelong” dream.

The Cleveland Browns owner told BBC Radio Five Live: “Aston Villa was a club I had already thought about for a long time as I became more familiar with the Premier League over the last three or four years.

“I just became more and more focused. The people I was working with in London had advised I continue to stay focused and that it (Villa) may be available, Mr Ellis may be of a mind to sell it, and it kind of built on itself.

“It wasn’t a lifelong thing. It would be dishonest and disingenuous for me to suggest it was. It seemed like an opportunity to make a little bit of a difference.”

Lerner admits his job has been made easier by the appointment of O’Neill by Ellis.

“I think Martin O’Neill is great,” Lerner added.

“I think he’s got the record, the history and the makings for a steady long-term commitment to Villa.

"That’s the plan.”