Teddy Sagi remains in talks to buy Reading football club, which plays in England's second tier Championship league. The "Daily Mail" reports that the Israeli billionaire sees his investment in the football club as a real estate venture and plans to build a shopping mall and hotel on the car park adjacent to Reading's Madejski stadium and a residential neighborhood on the club's training ground.
The "Daily Mail" adds that Sagi will buy the club for just £1 while assuming Reading's debt, which amounted to £38 million as of June 2013 when the club was relegated from the Premier League. However, this debt would almost certainly have risen over the past season in the Championship when the club finished seventh, narrowly missing the promotion play-off matches in the last game of the season.
Sagi, 42, has an estimated fortune of at least $4 billion and he is the controlling shareholder in Playtech Cyprus Ltd. (AIM:PTEC), which provides online platforms for bookmakers.
Reading's current owners Anton Zingarevich (51%) and Sir John Madejski (49%) prefer Sagi's offer over that of Indian businessman Mohit Burman because of his "strong business connections in the UK and his deep pockets," the "Daily Mail" reports. Zingarevich and Madejski are likely to retain a minority stake in the club.
Sagi is a Chelsea fan who holds a corporate box at Stamford Bridge.
Reading is under pressure for capital with the UK taxman demanding an immediate payment of £3.2 million.
The "Reading Post" recently reported that Sagi was seeen landing his helicopter near Reading's stadium, 50 miles west of London.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2014
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