Questions about finance hang over planned Bahraini purchase of Leeds
Sunday 30 September 2012
Concerns have been raised about the funding for GFH Capital's proposed takeover of Leeds United. The Bahrain-based equity investor, whose parent company, the investment bank Gulf Finance House, has posted a series of troubled annual reports, has declined to say how it intends to finance the purchase of the club.
GFH "had accumulated losses of $300.69 million contractual obligations... and its current contractual obligations exceeded its liquid assets", according to a letter on May 14 from the group's auditors, KPMG. While GFH Capital, a 100 per cent subsidiary, is a separate legal entity with its own funds and balance sheet, there are fears it plans to purchase Leeds with debt that could be put on the club's balance sheet, an approach used in several foreign takeovers.
Ken Bates, Leeds' chairman and majority shareholder, has been involved in discussions with the group since early in the year. GFH were granted exclusivity to pursue a takeover in June, and subsequently agreed a price for Bates' shares. A dispute over the terms of payment, however, has rumbled on since July.
On Friday, GFH Capital followed up its parent's forced statement to the Bahrain Bourse with a press release in which it discussed its plans for "sustained investment" in Leeds United without making specific commitments on funding, investment or the acquisition of the leased Elland Road.
When asked, GFH Capital confirmed it was not acting as a broker in the takeover, as has been suggested, but trying to buy the club itself.
Latest in Sport
Steven Gerrard tribute match: March 29 pencilled in for star studded game involving Jamie Carragher
Pornhub: Cheeky Liverpool fan uploads Philippe Coutinho wonder-goal video to adult website
Diego Costa keeps coin thrown at him during Capital One Cup final
Lukas Podolski corner: Has the Arsenal forward taken the worst corner of all time?
Ireland 19 England 9 player ratings: Jonathan Sexton? Devin Toner? Alex Goode? Who was the star man in Dublin?
- 1 This restaurant has misunderstood the concept of 'cheese and biscuits'
- 2 Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
- 3 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 4 PornHub turns masturbation into energy in bid to save the planet
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
End of the licence fee: BBC to back radical overhaul of how it is funded
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut