El Salvador-based Tether has made an audacious €1.1 billion (US$1.3m) cash offer to acquire Juventus, which could set the cat among the pigeons at the Bianconeri.
The club has fallen behind its main rivals since lifting the 2019/2020 Scudetto. AC Milan, Inter Milan and Napoli have outshone Juve in recent years. So a cash injection could help the fallen giants return to their past glory days in the not too distant future.
Tether kicked off building an 11.5 per cent stake in Juve in February, with CEO Paolo Ardoino a massive fan of the Turin titans and crediting part of his success to watching the club over the years.
He twisted US president Donald Trump’s former political slogan by using his own similar motto of ‘Make Juventus Great Again’, and enthused about bringing in a top-notch head coach such as Jose Mourinho or Zinedine Zidane.
Following Friday's bid for the Bianconeri, Tether released a statement from Ardoino last night that read: “Juventus has always been part of my life. I grew up with this team. As a boy I learned what commitment, resilience, and responsibility meant by watching Juventus face success and adversity with dignity.”
Tether boost for the Bianconeri
Tether is the world’s largest issuer of stablecoins, a digital token that is pegged to the value of the US dollar. It gets a substantial amount of income on the interest that is collected by US Treasuries who back the token, so is very stable.
A proposal from Tether is to fork out €2.66 (US$3.12) per share for the 65.4 per cent stake in Juventus. This is the amount of shares that are held by Exor, the holding company of the Agnelli family who have controlled Juve for over a century.
Juventus shares were each worth €2.19 (US$2.57) at market close on Friday, with a market capitalization of just under €925m ($1.09bn). Tether's offer puts the value of the club at €1.1bn.
If Juve accept the bid, there would need to be regulatory approval to rubberstamp the deal. Tether would proceed to buy the remainder of shares at their offered price.
Exor chief executive Elkann and his family are huge supporters of Juventus, having owned the club in their home town of Turin since 1923.
Juventus shares since 2001
The Bianconeri was first floated on the Milan stock exchange in 2001, and last month appointed Tether nominee Francesco Garino to their board of directors. Tether has since made it public that their goal is to integrate its businesses, which includes AI and biotech, into the sports industry.
Ardoino's statement added: "Tether is in a position of strong financial health and intends to support Juventus with stable capital and a long horizon."
It has been widely reported that Tether's tabled offer automatically lapses if Exor does not send its written acceptance by 18:00 CET on 22 December.