The PGA Tour announces that the merger with LIV has garnered unexpected attention from potential investors.

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The PGA Tour announces that the merger with LIV has garnered unexpected attention from potential investors.


September 27 (Reuters) – The PGA Tour has disclosed that its proposed merger with Saudi-backed LIV Golf and DP World Tour has attracted unexpected attention from potential investors, even as it works towards finalizing an agreement with the Public Investment Fund and the DP World Tour.

The PGA clarified that while it did not actively seek additional investment interest, it has a duty to its members, sponsors, and fans to diligently explore all potential opportunities.

“Our primary focus remains on concluding an agreement with the Public Investment Fund and the DP World Tour. Nevertheless, our ongoing negotiations have generated unsolicited interest from other prospective investors,” stated the PGA in a release on Wednesday.

Any investments arising from these discussions will be directed towards PGA Tour Enterprises, a subsidiary under the permanent control of the PGA Tour.

As reported earlier by Bloomberg News, the inclusion of external investors might serve to alleviate concerns voiced by politicians who fear that the merger could be seen as a takeover of a U.S. institution by LIV Golf, backed by the PIF.

The PGA clarified that the heightened investor interest is not a political move but a result of the PGA Tour’s strong business performance, coupled with the creation of PGA TOUR Enterprises as an investment platform for the first time.

The PGA Tour has further shared that discussions with Saudi Arabia’s Public Investment Fund and DP World are advancing, with the objective of finalizing a comprehensive agreement by December 31.

The golfing world was taken aback in June when the PGA Tour, DP World Tour, and LIV circuit, embroiled in a divisive feud that has divided the sport, revealed their intention to merge and create a unified commercial entity.

This announcement raised concerns among Washington lawmakers who harbor skepticism toward the kingdom and have been critical of its human rights record. They have pledged to conduct a thorough review of the agreement.

(Reporting by Juby Babu in Bengaluru; Editing by Chris Reese)

Reference:

https://www.reuters.com/markets/deals/pga-tour-says-liv-merger-attracts-unsolicited-investor-interest-2023-09-27/

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