Red and White increase Arsenal stake

February 17, 2009

LONDON (AFP) – Red and White Holdings Limited have increased their shareholding in Arsenal to over 25 percent, a statement released to the London Stock Exchange said Monday.

The company, whose chairman is David Dein, the former Arsenal vice-chairman, is owned by Russian metals billionaire Alisher Usmanov and his business associate Farhad Moshiri, a London-based investor.

Their new purchase still left Red and White some five percent short of the minimium 30 percent stake that would require them to launch a formal takeover bid under Stock Exchange rules.

In its statement, Red and White said the increase in their shareholding was "in line with Red and White’s previously stated intention to secure a significant shareholding in Arsenal and ensure that its position is protected".

The statement added: "We are pleased to have now secured over a quarter of the shares of Arsenal.

"We are committed long-term investors and supporters of the club and are comfortable that we are now in a protected position.

"We also welcome the strengthening of the squad and look forward to a successful conclusion to the season."

Red and White was formed in August 2007 following the initial sale of Dein’s 14.5 percent stake in the north London club.

By October they had increased their stake to 23 percent and that became just over 24 percent almost a year to the day before Monday’s latest increase.

Usmanov’s taking a stake in Arsenal led to a ‘lock-down’ agreement between the other members of the Gunners board who said they would not sell shares that might, if they fell into other hands, lead to a a takeover of the club.

Arsenal, currently fifth in the Premier League and in danger of losing their status as a member of English football’s so-called ‘Big Four’, face Cardiff in an FA Cup fourth round replay at the Emirates Stadium later Monday.

Written by: AFP

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