Jacob Steinberg writing for the Guardian has written a special report on Daniel Kretinsky’s arrival at West Ham and what could happen next.
Steinberg claims PAI Capital had heard that David Sullivan wanted out of West Ham and says Azerbaijani businessman Nasib Piriyev, had been invited for talks at Sullivan’s Essex mansion before making his first bid and had gone away feeling positive. There were discussions about figures, about life at the London Stadium and the overriding sense was that a deal was there to be done with West Ham’s majority shareholder.
The report claims an opening offer of £300m for the club was turned down in November 2020 before PAI returned with a £400m offer last February but Sullivan had become less welcoming. The 72-year-old would then dismiss PAI as “property people” when its interest became public last summer and had caught them off guard by privately telling them he had given exclusivity to a Czech billionaire.
Enter Daniel Kretinsky who paid a reported £150m for 27% of West Ham last November, valuing the club at over £555m.
According to documents submitted to Companies House last November, Kretinsky has an option for a full takeover. The papers revealed that there is a put and call option agreement between Sullivan, 1890 holdings a.s, the holding company used by Kretinsky to buy his shares, and EP Investment Sarl, Kretinsky’s investment company. The deal gave Sullivan the right to sell his shares to Kretinsky at a set price, and Kretinsky has the option to buy Sullivan’s shares. The price cannot change and other shareholders can be included in the deal under the same terms, though the option exists only for a certain period.
There is no guarantee Kretinsky will increase his stake. Kretinsky, who also co-owns Sparta Prague, could decide to hold back. He has not taken full control of Sparta since buying a 40% stake in 2004.
Supporters have long believed that next year, 2023, will be the year that David Sullivan and David Gold exit the club, finally free of any windfall tax from the London Stadium deal they signed almost a decade ago. It remains to be seen what is next for the club shareholders.