American businessman Stan Kroenke has taken a controlling stake in Arsenal and has agreed terms for the purchase of the remaining stock which values the club at £731m (€825m).
Kroenke Sports Enterprises, which has gradually built its stake in the Gunners since first buying 9.9% of shares in 2007, must now bid to buy up the remaining shares after taking their stake to approximately 62.89% after reaching undertakings with major shareholders Danny Fiszman and Lady Nina Bracewell-Smith.
Terms have also been agreed for KSE to buy up the remaining share capital at a cost of £11,750 (€13,270) a share.
Kroenke said in a statement to the Stock Exchange: “We are excited about the opportunity to increase our involvement with and commitment to Arsenal.
“Arsenal is a fantastic club with a special history and tradition and a wonderful manager in Arsene Wenger.
“We intend to build on this rich heritage and take the club to new success. I am delighted that Peter Hill-Wood has agreed to support us by continuing as chairman.
“We especially wish to acknowledge and thank the board, Danny Fiszman and the Fiszman family as well as Lady Nina Bracewell-Smith and her family for the confidence they have had in me over the past years and in allowing us to move forward in this more prominent role.”
KSE already own NBA basketball franchise the Denver Nuggets, the Colorado Avalanche NHL ice hockey team and Major League Soccer side the Colorado Rapids.
KSE have entered into a call and put option agreement with DF Nominees, the company holding Fiszman's stake, to purchase their 16.11% holding and have also received ``irrevocable undertakings'' from Lady Bracewell-Smith and other shareholding directors to sell their shares, totalling 16.79%.
Kroenke’s main focus will now be on purchasing the stake of Russian billionaire Alisher Usmanov, who does not have a seat on the board but controls 27% of the club’s holding company.
Gunners boss Wenger welcomed the news and said: “I have worked with Stan Kroenke at board meetings over the past couple of years and I believe he has the best interests of Arsenal at heart.
“He understands the club’s heritage and traditions and our ambition to run the club in a way which protects our long-term future.”
Arsenal chairman Hill-Wood, who initially said the Gunners did not want Kroenke’s “sort” involved at the club when KSE bought their initial stake four years ago, added: “The board of directors and I consider it a key responsibility to protect the ethos and spirit of the club.
“Mr Kroenke, although relatively new to Arsenal, has shown himself to be a man who values and respects the history and traditions of this very special club that we cherish. We are confident that he will be a safe custodian of its future.
“At this time of transition I would like to pay particular tribute to Danny Fiszman for his immense contribution. Danny’s vision and drive led the relocation to our new stadium, an historic move which will benefit the club and its many passionate fans long into the future.
“I would like to pay tribute to the important and long-standing role that the Bracewell-Smith family have played in Arsenal’s history. The family have been staunch supporters of the club for over 70 years and the club is significantly indebted to them for the role that they have played in its development and success. We will be considering appropriate ways to mark this long and valued contribution.”