At Olympique Lyonnais, the prospect of a change of ownership is becoming increasingly likely. A statement from Eagle Football Group announced on Tuesday the establishment of an independent committee tasked with preventing any conflict of interest in the context of a potential sale or change of control linked to the administration proceedings concerning Eagle Football Holdings Bidco Limited.
Following the placement of Eagle Football Holdings Bidco Limited – the holding company that owns 87% of the club – into administration last March, Olympique Lyonnais is set to face further internal upheaval.
Eagle Football Group issued a statement on Tuesday announcing the establishment of an ad hoc independent committee to “appoint an independent expert, monitor the expert’s work and issue a recommendation to the Board of Directors on the merits of a potential public offer” should a change of control materialise.
Ares and Michele Kang are in the running
In practical terms, it is not OL itself that is up for sale, but its parent company, Eagle Bidco, whose assets (including the majority stake in Eagle Football Group, formerly OL Groupe) are on the market. In this context, the directors acknowledge that third parties interested in a takeover may now access confidential information, subject to strict undertakings.
However, a key element of the statement lies in the fact that discussions with investors are already underway: a consortium comprising Ares Capital (the investment fund that lent money to Textor for his acquisition of the club) and an affiliate of Michele Kang (the group’s current CEO) has signed a confidentiality agreement. The document also highlights that a change of control of the company is a possible outcome, which would entail the launch of a mandatory public offer for the shares.
The independent committee appointed to avoid conflicts of interest
Such a scenario would mark a further major step in the governance of the Lyon club. Aware of the stakes and potential conflicts of interest should Kang be involved in a takeover, the board of directors has therefore set up the ad hoc committee composed of independent directors mentioned above, to oversee the process, supervise the evaluation of any offers and make a recommendation in the interests of the company, its shareholders and its employees. In short, the sale of OL is no longer a theoretical possibility but a credible prospect.
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