Lyon receives Textor's assurance buyout will proceed

Olympique Lyonnais (OL) received assurance from Eagle Football's majority shareholder that the buyout of the club would eventually take place, the French Ligue 1 soccer club said on Thursday, sending its shares up 20 per cent.

American investor John Textor said his Eagle Football Holding LLC would go through with the thrice-delayed purchase of the club, announced in July, adding he expected the deal to be closed shortly.

Eagle Football will pay around 327.4 million euros ($344.2 million) to OL's main shareholders for 39.2 million shares and 789,824 subordinated bonds redeemable in new or existing shares, followed by a tender offer for the remaining shares.

Eagle Football has secured the funds needed to conclude the deal "in the coming days" as well as the tender offer, Textor said in a letter to OLG and its shareholders quoted in the club's statement.

"We therefore feel confident that the remaining consents should be obtained and the agreements signed shortly so that all conditions shall be satisfied to complete the Transaction," he said.

Billionaire Textor has bought stakes in soccer clubs around the world, with his interests including Brazilian club Botafogo, Premier League Crystal Palace and Belgian second division Molenbeek.

His plan is to beat the system dominated by the big European clubs by developing young talent from North and South America.

"We are more than ever enthusiastic about, and fully committed to, the development of Olympique Lyonnais under the stewardship of (President) Jean-Michel Aulas and his team," Textor said.

Eagle Football has also agreed to subscribe to a private placement of OL shares worth 86 million euros once the acquisition is completed.

The French club, which has been listed since February 2007,