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GFH Share Sale Points to a Greater Emphasis on Leeds Unitedby Right In The Gary Kelly's
Gulf Finance House, the Bahrain based company which controls a majority stake in Leeds United, has undergone something of a power shift in recent weeks.
The resignation of former chairman Essam Janahi and the appointment of a new chairman, Dr. Ahmed Al Mutawa, was the first sign that times were changing inside GFH. The appointment of Mutawa was significant; especially because he was the spearhead behind GFH-Capital’s purchase of LUFC. The aim of the appointment was to take GFH in a new direction, with the company showing signs of economic prosperity in an ever-changing Bahraini economy.
GFH have also been reviewing their assets and operations throughout their portfolio, including Leeds, since Mutawa took charge. As recently as two days ago, the company have been instigating meetings with a view to exit operations, most of which are in India. These exits were described on the Bahrain Bourse as “successful,†in the near future GFH will send their Indian portfolio, seemingly for a profit. As far away as India is to Beeston, the streamlining of GFH’s portfolio has positive resonations for Leeds. Since taking charge, Ahmed Al Mutawa has seemingly shifted the company’s stance on the football club, from immediate sale, to a more medium/long-term outlook. This will obviously have more financial reward for GFH in the long-term, while Leeds have the benefit of a more stable ownership. It now seems fairly clear that Gulf Finance House want to be the men in charge when Leeds get back to the promised land.
Today’s confirmation of Salah Nooruddin purchasing a significant amount of shares in the company has further cemented the idea that GFH are committed to Leeds United. Nooruddin, United’s current Chairman and 10% owner of Leeds through his family company Investate realty, purchased shares amounting to 5.71% of the company, at a price of around $29 million. Nooruddin will now have a seat on the GFH board of directors, another significant move for Leeds United. Aside from David Haigh and Salem Patel, who had small roles in both GFH and subsidiary GFH-C, only Nooruddin has direct access to the boardroom. Could this be significant for Leeds? It certainly could, the fact that Mutawa and Nooruddin have key roles inside the company speaks volumes about their expertise as businessmen, but also the amount of faith put in to LUFC as a result.
The resignation of Hisham Al Rayes earlier this year meant that no member of GFH was present at Leeds, which suggests that his hypothetical replacement (Nooruddin) is a member of the Leeds board, in Bahrain. Yesterday, Nooruddin purchased 5.7% worth of shares from former chairman Janahi and also regional brokers Al Ahlia. Both held no shares in GFH up to that point, but today it has been revealed on the Bahrain stock exchange that Al Ahlia has bought back 1.1% from Salah Nooruddin, worth approximately $5.8 million. The reason for this transaction is unknown.
All of the news coming from GFH in the past few weeks have undoubtedly put Leeds in good shape coming into the second half of the season, where things are gathering pace on the football field. Many would argue that the January Transfer window is crucial to the fortunes of United’s season. Players need to be moved on but a high profile signature could prove instrumental in the race for promotion. Nooruddin’s new position at the heart of GFH could well bring greater financial investment into the football club, directly from GFH’s clients. The way that the club are dealing with the financial burdens of a football club look to be heading in the right direction and a man at the top tier of both United’s and GFH’s board room could provide the difference between the Championship and the Premier League.
Reporter – Jake Ross
http://rightinthegarykellys.com/2013/11/12/gfh-share-sale-points-to-a-greater-emphasis-on-leeds-united/
