Offer by Coventry City owners Sisu for Ricoh stake rejected

[dutchman]

An offer by Sky Blues owners Sisu for a half-stake in the Ricoh stadium has been rejected, the Telegraph can exclusively reveal.



Failure so far to strike a deal with the Alan Edwards Higgs Charity – which equally owns the Ricoh company with Coventry City Council – has prompted renewed fears the club could be heading for administration or liquidation.

Coventry City Council leaders also told this newspaper yesterday they do not now expect any progress on their Ricoh ownership talks with Sisu before the start of the football season.

The Telegraph understands a third unpaid £100,000 monthly rental payment for the stadium is now due – with the football club seeking a lower rental agreement.

Slow progress on talks will further frustrate the relegated and deficit-hit football club’s desperate attempts to put together a business plan for the new season in Division One starting in mid-August; and to have its accounts signed off by Sisu to enable a player transfer embargo to be lifted by the Football League.

The Telegraph can reveal Mayfair-based hedge fund Sisu made an offer “prior to last weekend” to the Higgs Charity for its 50 per cent stake in Arena Coventry Limited (ACL).

Peter Knatchbull-Hugessen, on behalf of the Trustees of the Alan Edward Higgs Charity, said yesterday: “Talks between the charity and CCFC/Sisu continue. An offer has been made.

“The trustees and their advisers have discussed it. As it stands it is not acceptable in several respects. If a sale to CCFC/Sisu is to be possible further talks and movement by CCFC/Sisu will be needed. The trustees and their advisers have to be mindful that they are responsible for public money and that any disposal must achieve a proper value.

“The trustees hope that talks will continue so that the offer is improved.”

The statement added: “CCFC/Sisu are carrying out due diligence on ACL to assure themselves as to the value of the company in which they wish to become shareholders. That process is continuing. The charity is not a part of, or aware of the progress of, talks between the city council and CCFC/Sisu as to whether the city council will be happy to enter into a partnership with CCFC/Sisu in the joint ownership of Arena Coventry Ltd.”

He would not be drawn on how much Sisu offered, or what the Higgs charity’s price might be.

He said the charity had always refused to comment on years-old speculation the shares could be for sale for £10million, based on a previously agreed market formula. But he said Sisu’s offer was “outside of the formula”.

Council deputy leader George Duggins, who was directly involved in last month’s Ricoh ownership talks with Sky Blues’ owners Sisu and the Higgs charity, said: “There is nothing new to say. There are no further meetings planned.

“This is a lengthy a difficult process. If I’m honest about it, I would be very surprised if anything happens much before the new season starts.

“The primary purpose for Sisu is to sort the club out. As far as the Ricoh’s concerned, we’re going to ensure we don’t do anything to undermine the Ricoh whatever.

“People can read into that what they like.

“We want a successful football club, and we’re as frustrated by what has happened as anyone else.”