Aberdeen FC hoping to unlock £2 million by becoming private limited company
Friday June 7th 2019 at 12:56 PM
Aberdeen FC’s board of directors are seeking approval to become a private limited company, in an effort to unlock a potential £2 million.
A notice is being circulated to all shareholders today, outlining the need to change from being a public limited in order to meet the “ambition and strategic objectives” of the club.
Under the current rules, anyone who has shares worth 30% or more of the voting rights in the company has to make an offer to acquire all of the equity shares, which the club claims is putting off some investors who don’t want to be forced make a bid.
By changing to a private company, shares will no longer be offered to the general public and £2 million of investment will be secured, enough to close the fundraising for the training facilities and community hub at Kingsford.
Club chairman, Stewart Milne, said: “This change will facilitate investment in the Club by way of share subscription. This will allow a currently proposed investment of £2 million to proceed and increase our ability to attract further investment in the future.”
“Share subscription has played a key part in raising funds for phase one and, along with other initiatives, will continue to play a big part in fundraising for the new stadium.”
“It is the intention that both existing and new shareholders will be able to participate in the phase two share subscription.”
A vote on the proposal will be taken at a General Meeting on Tuesday, 2 July.