For a takeover to happen, a bidder will need to be given a period of exclusivity to get a deal over the line.
And this period will start when due diligence has been done and a deal is agreed between Dai and a preferred bidder.
The Royals aren’t at the exclusivity stage, but they are closer to it than they were according to an update from the Supporters’ Trust at Reading (STAR), which will please supporters who are desperate to see a change of ownership in Berkshire.
A bidder being given exclusivity doesn’t mean a takeover is guaranteed at that point – because the EFL need to approve it. But it would be a massive step closer to a change of ownership.
Dai Yongge’s stance on bidders for Reading FC
According to the same update from STAR after their meeting with Nigel Howe, owner Dai has been provided with the proposals for the football club, and it’s thought the Chinese tycoon feels positively about at least one of those offers.
Supporters should take heart from this, even though the unsuccessful attempt to acquire Genevra Associates will leave them damaged.
By late November, The Reading Chronicle had stated that they were almost guaranteed exclusive rights.
However, that was the extent of it, as it appeared that the agreement collapsed at the eleventh hour. There have been many arguments over who should take the blame for that, but The Telegraph thinks Dai should bear the brunt of it since he allegedly altered the contract.
Nigel Howe’s stance revealed amid interest in Reading FC
Howe, who is the former CEO of the club and heavily involved in the sale, has admitted to STAR that he is keen to ensure Dai’s successor can not just save the club in the short term, but is also able to fund it in the long term.
Dai was able to fund the club for much of his reign and if anything, he spent far too much, but he now seems to be struggling to come up with the funds needed to keep the Royals afloat.
Speaking during the latter stages of last month about what’s needed from a new owner, he told BBC Radio Berkshire: “With the EFL, it’s not just about the owners’ test, it’s also about making sure the financial requirements are met as well and putting in place a business plan the EFL say is workabl
We’ve offered everyone who expressed interest the chance to submit a proposal to us. When we meet with Mr. Dai when we have them, maybe he will agree to one of them.
“I believe it will take at least a few months to be ratified. I hope to meet Mr. Dai within the next several weeks, but there isn’t a set date just yet.”
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