As in the Ligue 1 championship last year, where the Lyon football club finished in eighth place, without being able to qualify, therefore, for any European cup, it is through the back door that OL Groupe may -to soon be out of the Parisian coast.
Pathé, the Chinese fund IDG Capital and Holnest, the holding company of the president and founder Jean-Michel Aulas, have just entered into exclusive negotiations with Eagle Football Holdings with a view to selling it a majority stake in the capital of OL Groupe. Eagle Football Holdings is none other than the company managed by John Textor, 56, co-shareholder of the British Premier League club Crystal Palace (40%) and also owner of 80% of Belgian Racing White Daring Molenbeek and of 90% of the Brazilian Serie A Botafogo Futebol Club.
Enterprise value of 884 million
This is a surprise, insofar as John Textor’s offer had been judged ” too low and he has lost ground, even if he has not yet given up hope, like the other two candidates “, recently indicated the daily The Team. Foster Gillett seemed to hold the rope. The 46-year-old American businessman, son of George Gillett and former owner of Liverpool, came to meet Jean-Michel Aulas at the beginning of the month, offering him to inject 600 million euros, via the acquisition of part of its interests (28%) and the stakes of Pathé and IDG (nearly 20% each, both having been sellers of their shares for many months) and an additional payment.
John Textor will, in the same way, take over all the shares of Pathé and IDG (respectively 19.26% and 19.74% of the capital to be more precise) and of Holnest (27.56%), i.e. a total of 66.56% of the interests of the group which oversees the Lyon football club. Disappointment, on the other hand, on the price, announced at 3 euros per share, which will also be that of a reserved capital increase, for an amount of 86 million euros. i.e. an enterprise value of 798 million euros at 1er July and 884 million post-fundraising. This is below the last listed level of 3.07 euros and especially that of 3.3427 euros at which the Chinese fund IDG Capital entered the capital in 2016. We will not, of course, recall the more than 15 euros which prevailed at the time of the IPO at the end of 2006. The premium nonetheless stands at nearly 60% compared to the share price before the communication from Pathé and IDG Capital on their intention to sell their holdings.
An exit from the coast leaves little doubt
The capital increase would be subject to the approval of the extraordinary general meeting of OL Groupe shareholders which would be convened for this purpose, in principle before July 31. Holnest, Pathé and IDG Capital have already committed to vote in favor of the operation, the proceeds of which would be used to make significant investments, particularly in sports teams, as well as in infrastructure. The closing of the offer could, it, intervene during the fourth quarter, with in sight a compulsory delisting.
As previously mentioned, Jean-Michel Aulas will retain his mandate as CEO for a period of at least 3 years and will therefore be in charge of the group’s strategy. OL Groupe’s executive committee would remain unchanged, but Jean-Michel Aulas would also join the management of Eagle Football to support its development and that of the clubs in which the company has a stake.
For Oddo BHF, there is little doubt about the scenario of an exit from listing, ” after 15 years of listing and an altogether disappointing stock market performance “. Together with Holnest, Eagle Football will indeed hold 89% of the capital at the end of the operation and the reimbursement of the OSRANE (bonds redeemable in new or existing shares), calculates the research office, which concludes that ” there is therefore little doubt about the outcome of the takeover bid in the fourth quarter and should, unless the situation turns around, result in OL Groupe being delisted. »