Stefan Borson: Everton £400m takeover bid set to fall short

The £400million takeover bid for Everton is likely to be rejected as it ignores the club’s alarming debt levels.

That is the view of finance expert Stefan Borson, who exclusively told Football Insider that he can’t see “any way” that a £400million deal would satisfy Everton’s creditors.

As reported by the BBC, a consortium which includes a Saudi Royal tabled a £400million takeover bid to buy Everton.

London-based businessman Vatche Manoukian is at the forefront of the consortium, which has proposed an all-equity offer which would not take on additional debt.

However, the Merseyside club have saw their debt levels increase significantly during the takeover process with 777 Partners with their overall debt expected to be close to £1billion.

Since the £400million bid was tabled, Roma owner Dan Friedkin is now a strong favourite to purchase the Toffees after jumping ahead of four other bidders.

Everton £400m takeover bid doubted by Stefan Borson

Borson explained that a £400million offer hugely undervalues Everton because of their increased debt levels.

“It’s interesting the way that it’s been described as a £400million deal because that can’t be for Moshiri’s stake,” Borson told Football Insider.

“It must be the value of the entire entity, but then it ignores the fact that they have about £1billion of debt.

“About £600million of it is external debt and about £400million is Moshiri debt.

“Moshiri has put some money in as equity, but it almost certainly undervalues the enterprise itself.

“Therefore I would I would suspect that it’s just not a runner at all.

“It’s been described as a £400million bid in the press to deflect from the likelihood that they’re going to be able to do the deal.

“I don’t see any way in which the secured creditors are going to accept an overall deal package at £400million.”

In other news, Everton takeover could be completed ‘within two weeks’ – Keith Wyness

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