Liverpool Announce to Stock Exchange They Have Agreed Terms of Takeover Offer

Liverpool have announced to the stock exchange they have agreed the terms "of a recommended cash offer" to be made by Kop Football Limited, the American consortium led by George Gillett Jr and Tom Hicks to buy the club.

"The offer is £5,000 in cash for each Liverpool share, valuing the issued share capital of Liverpool at approximately £174.1m," read the statement. "Together with the £44.8m of net debt in the club as at December 31 2006, this represents an enterprise value for Liverpool of £218.9m."

The statement also revealed the board "unanimously recommends" that shareholders accept the offer. "Kop is an English private limited company, which has been incorporated for the specific purpose of making the offer and which is ultimately jointly controlled by Mr George Gillett jnr and Mr Thomas O Hicks," it adds. "The board of Liverpool ... considers the terms of the offer to be fair and reasonable. The board of Liverpool unanimously recommends that Liverpool shareholders accept the offer."

The club's board also revealed key factors in their decision to accept the proposal, including Kop's intention to build the proposed new 60,000-seat stadium in Stanley Park "as soon as reasonably practicable", their commitment "to an annual budget for player transfers" and "their support of both the current executives and the football team management at Liverpool to provide stability to the club".

Hicks, who also owns the Texas Rangers baseball team, joined forces with Gillett to gazump rival bidders Dubai International Capital last week. A statement from the duo read: "Liverpool is a fantastic club with a remarkable history and a passionate fanbase. We fully acknowledge and appreciate the unique heritage and rich history of Liverpool and intend to respect this heritage in the future. The Hicks family and the Gillett family are extremely excited about continuing the club's legacy and tradition."

Meanwhile, Liverpool chairman David Moores has revealed that he will become the club's honorary life president. "I believe this is a great step forward for Liverpool, its shareholders and its fans," he said. "This club is my passion and forms a huge part of my life. After much careful consideration, I have agreed to sell my shares to assist in securing the investment needed for the new stadium and for the playing squad. I urge all my fellow shareholders to do the same and to support the offer. By doing so, I believe you will be backing the successful future of Liverpool football club. I am also delighted to accept the offer from the Hicks and Gillett families to continue my involvement in the club by becoming honorary life president."