Blackburn Rovers bidder's firm IS suspended (From Lancashire Telegraph)

Blackburn Rovers bidder's firm IS suspended

8:50am Thursday 2nd September 2010 in

By David Watkinson » Deputy news editor

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FRESH concerns have been raised about an Indian businessman’s bid to take over Blackburn Rovers after it emerged his main Bahrain firm IS suspended from trading.

Confusion arose yesterday when Ahsan Ali Syed denied reports Western Gulf Advisory had been shutdown pending an investigation.

But last night Bahrain’s Ministry of Industry and Commerce told the Lancashire Telegraph that it HAD suspended WGA from trading following information from the country’s Central Bank.

Mr Syed’s spokesperson has now confirmed the sanction, but clarified that WGA was ‘still operating, but not trading’.

And she said the suspension would not affect his £300million takeover of Rovers as WGA ‘was not carrying out any investment activities’.

A different firm, Swiss-based Western Gulf Advisory AG was leading the Rovers bid, the spokesperson said.

However, Rovers fans said the announcement had left them with concerns about Mr Syed’s takeover.

Western Gulf Advisory had its licence suspended by the government in Bahrain as an investigation was launched into its financial practices, a spokesman for the Ministry of Industry and Commerce said.

The inquiry will focus on the company’s ‘source of funds’ and will seek a ‘clarification of transactions’, according to the spokesman.

The spokesman said the company had allegedly violated regulations by 'operating outside its remit'.

He said: “WGA is currently under investigation by the government after concerns were raised.

"Clarification is needed on some transactions and the investigation will also look at the company’s source of funds.

“The government has the power to close down any business that breaches the regulations.”

But bosses at WGA said the move in Bahrain did not affect other parts of the business, including the Western Gulf Advisory AG, based in Switzerland.

It is understood that any investigation could take many weeks.

Yesterday WGA spokesperson Julia Thiem told the Lancashire Telegraph the WGA had 'not been shutdown'.

She said the 'only reason' offices were closed was because the firm was moving to new premises.

Being asked to clarify the situation following the statement from the Bahrain government, Ms Thiem last night said: "The Ministry has asked us not to carry out any investment activities or trading from our Bahrain entity while the clarification process is ongoing.

“But, as we are not carrying out any investment activities from Bahrain anyway, it is not affecting our operations at all.”

She said the firm was 'not trading but still operating'.

Blackburn MP and Rovers season ticket holder Jack Straw said he believed the Walker Trust would thoroughly research any potential buyer.

He said: "The club is well known for being very well run and has been since the time of Jack Walker.

“The developments in Bahrain are being followed by all Rovers fans and I am quite sure that all will be done to ensure that any takeover will be in the best interests of the club.

"We don’t want the club to turn in to another Portsmouth.”

Blackburn Rovers fan and Lancashire Telegraph columnist John Myles said he remained cautious about the takeover.

He said: “I am like a lot of fans in that I don’t want to count my chickens until they have hatched.

"I have been like that since they first started talking about this bid and I remain that way.

“The club has to be careful that the future is safe and I am sure that the senior management will ensure that.”

The Premier League said that its ‘owners and directors test’, which is a tightened up version of the former ‘fit and proper persons test’, does not specifically cover companies which have been suspended from trading.

However, it is understood that the Premier League is confident that checks being made by Blackburn Rovers and chairman John Williams during the current due diligence period on potential buyers will exceed any that the authorities put in place.

Mr Syed and WGA have been linked with a takeover of Blackburn Rovers since last month and a team of negotiators arrived at Ewood Park recently to begin talks.

He has pledged to invest £300milliion in the club, and give manager Sam Allardyce a £100million transfer kitty over five years.

Mr Syed, whose personal wealth has been reported to be between £3bn and £8bn, is currently going through due dilligence - this is when the books are opened up for inspection.

He said he would be investing his personal wealth in to the club, through his Swiss firm, and he would be the sole investor.

The takeover bid is being negotiated by Western Gulf AG's European investment team, which is currently involved in the creation of a new Europe-based firm, WGA Sports, which will oversee all Mr Syed's sports investments.

According to its company website, Western Gulf Advisory provides services relating to asset and wealth management and Mr Syed's family has been involved in private sector lending across Asia for 150 years.

Accounts from WGA show that as of December 31 last year the company had total assets of over US$1.19bn.

The majority of that, US$859million, was listed as ‘funds available for investment’, which is described in the accounts as ‘funds made available by a shareholder’.

Some $286,468 is held in bank funds, according to the accounts.

Meanwhile, there remains strong other interest in purchasing Blackburn Rovers, with the first suitor to make his interest public, Saurin Shah, still in talks.

It is understood the Mumbai businessman's representatives have been in London to continue negotiations with Rothschilds as they remain serious rivals to Mr Syed.

Another Indian group and a trio of Australian tycoons have also been linked with a bid for the club.

Comments(77)

PK Bailey says...
9:11am Thu 2 Sep 10

Well well seems some people just can not abide by the rules of cricket or can they!