Sheik Mansour makes a couple of quid.

[ja0005]

Sorry, title should be a couple of billion quid. Can't see Platini outsmarting him to be honest.

From The Telegraph.

Sheikh Mansour bin Zayed al-Nahyan, one of the Middle East investors who helped Barclays avoid a government bailout in 2008, has effectively sold his remaining stake in the bank after cashing in a total profit of about £2.25bn.

By Louise Armitstead
Published: 6:00AM BST 08 Oct 2010


Sheikh Mansour officially retains ownership of the shares but has sold almost all the risk to Nomura via a complex hedging procedure. Sheikh Mansour, a member of Abu Dhabi's ruling family who also owns Manchester City football club, has exercised his remaining 132m warrants worth £140m.

Although he officially retains ownership of the shares, which are held in his investment vehicle PCP3, he has sold almost all the risk to Nomura via a complex hedging procedure.

Sheikh Mansour was one of three Gulf investors who helped Barclays raise £7bn in 2008 at the height of the financial crisis. The cash injection, the bulk of which came from Qatari investment vehicles, helped persuade the UK Government that Barclays could survive without a state bail-out.

The sheikh held his investment in warrants, instruments that allow investors to buy ordinary shares back at a set price by a specific date. At the time, Sheikh Mansour bought 758m warrants, giving him the right to buy shares at 197.7p at any time before 2013. In February, he exercised 626m warrants when the shares were at 302p. Yesterday Barclays shares closed at 304p.

The hedging instrument set up by Normura has allowed the sheikh to lock in the value of his warrants. Under the terms of the arrangement, he could make more money if the Barclays shares rise. However, he will not lose out if they go down.

Sheikh Mansour has now effectively made a total profit of £750m from the warrants alone. He already collected £1.5bn profit last June by selling mandatory convertible notes in Barclays he bought for £2bn.

The deal will be welcomed by Barclays since exercising the warrants three years ahead of time removes the uncertainty they held over the bank.

[Burt]

I love the fact that the £750mill profit that he's made, is about the same as the rag's debt hahahahaha!!!

[Fesan]

Yes alot of money etc. but is it that big of a return considering the size of the investment? And could he have made more by placing the money elsewhere in 2008 and sell now?:-) These are the questions most financial astute people would as I guess?


Anyways great for us! Fat chance in hell that the utd owners will pull in money like that (and if they did they prob. would'nt spend a dime of it on the club!:P). Ah these are wonderfull sky-blue times!

[Beeks]

The supposed new owner of scouse1 is worth 800 million apparently..puts everything in perspective of how minted our boy really is haha

[Moonchesteri]

Yes alot of money etc. but is it that big of a return considering the size of the investment? And could he have made more by placing the money elsewhere in 2008 and sell now?:-) These are the questions most financial astute people would as I guess?

Do you or someone else know what was his original investment? ie how much he paid for those warrants?

[Abu Dhabi]

2.25 bn profit from a 5.5 bn investment in two years is a great business by all standards. That's 40 fuckin percent ffs

[Slim]

The supposed new owner of scouse1 is worth 800 million apparently..puts everything in perspective of how minted our boy really is haha

Yeah, and he'll have to sink 500M into the scousers to buy the club and wipe out the debt, I wonder if they'll be happy knowing they still have fuck all for transfers.

[The Man In Blue]

If anyone's interested the rags just posted a record £84 million loss.

[bluej]

If anyone's interested the rags just posted a record £84 million loss.

Haha.

If only they had a Ronaldo to sell every year!

[mcfc1632]

....all great news - but the Platini regulations are definitely 'out to get us' - specifically aimed at CITY

If the UEFA officials being quoted in this mornings Independent article are being acurately reported then they are hell-bent on making sure that this years spending (and lasts) will have to be spread over 5 years (for accounting purposes) - even if the payments are fully made etc - this puts major blocks in the way - impossible without CL revenues - very very hard even with them - we need significant commercial growth over the next 2 years - we all need to be four-square behind Cook and co

I do not think UEFA will be allowed any lattitude to be 'lenient' with us - even if we are on track etc - just imagine the furore if they did - all other clubs - and especially the media will crash down on them - just look at the NDJ stuff this week as an example of the attack - for a tackle that was not even a foul

It is great that the Sheik is making even more money - and it is superb that he will not even miss his investment in CITY - but people are too blase on this subject of compliance with FFP - taking it for granted that the Sheik will be too clever etc.

It really really will not be that simple - these regulations were bought in at he behest of the 'old guard' - and is nothing to do with the lessons of Leeds / Newcastle / Pompey etc - this is a concerted effort specifically aimed at our club and the manner in which the regulations are being developed and planned for implementation is directly intended to stymie our club - this is simple fact - not paranoid

[halnone]

fuck, this guy is richh!!

[blues-clues]

fuck, this guy is richh!!

Rich doesn't really do it justice does it?

He was basically able to gamble with £5.5bn! He obviously had a fair idea that Barclays was going to be ok but you never know what is going to come out of the woodwork. He could have lost it all but he ends up with a nice fat wedge of £2.2bn. I bet if I added up the combined wealth and total lifetime earnings of everyone I know it wouldn't come to £2.2bn and he made it in two years!

[Dameerto]

Whatever those warrants cost (presumably a fair bit more than the share price of nearly £2 each) he made a huge return and in a relatively short time.

[sandman]

If anyone's interested the rags just posted a record £84 million loss.

Haha.

If only they had a Ronaldo to sell every year!

Vidic, then Rooney, and replace them with more hobo's

[ronk]

fuck, this guy is richh!!

Rich doesn't really do it justice does it?

He was basically able to gamble with £5.5bn! He obviously had a fair idea that Barclays was going to be ok but you never know what is going to come out of the woodwork. He could have lost it all but he ends up with a nice fat wedge of £2.2bn. I bet if I added up the combined wealth and total lifetime earnings of everyone I know it wouldn't come to £2.2bn and he made it in two years!

It was almost zero risk. There was a government bailout on the way if the investment failed. It was clear as day that they just needed a big wedge of cash quick and were willing to offer incredible terms to anyone who could produce it. It was talked about at the time, you didn't need to be especially smart, just loaded.