Lions buy, for 15.4 million euros, the 51.4 million Mandatory Convertible Securities held by Novo Banco and now hold 87.994% of SAD. They also talk about the possibility of a minority partner joining.
Sporting announced the conclusion of negotiations with Novo Banco with a view to purchasing the 51.41 million Mandatory Convertible Securities (VMOC) that were still held by the financial institution – and which could be converted into shares by 2026. With the purchase owns VMOC, the club now holds 87.994% of SAD. And it also opens the door to minority investors.
The purchase of VMOC was completed through a new anticipation of revenue from the television contract with Nos, via Sagasta (another financial entity), informed SAD dos leões in a statement to CMVM.
Thus, to complete the operation, Sporting advanced another 50.075 million euros in funds from the deal with Nos relating to television broadcasting rights, through Sagasta – with which it had already signed an identical agreement, last year, to buy the VMOC held by BCP. Sporting’s SAD debt to Sagasta is now 113.9 million euros.
Novo Banco also owned 51,416,951 VMOC from Sporting SAD, acquired in two issues (in 2011 and 2014) for the value in euros corresponding to the number of securities (i.e., 51.41 million euros). These titles have now been repurchased for 15.42 million euros – which implies a discount of 70.01%.
After the conversion of the aforementioned amounts into shares, Sporting Clube de Portugal will increase its participation in the share capital of Sporting SAD to 87.994%.
With this agreement, not only were the VMOCs that Novo Banco still held purchased, but also the debt with this financial institution was restructured. “The net proceeds from this operation allowed Sporting SAD to restructure the bank debt, extinguishing the debt originally belonging to Novo Banco, SA (with outstanding capital of 35,403,508.62 euros), with the exception of financial leases. As a result, the company changed its financial exposure to just Sagasta, except financial leases”, says the club in another statement to the CMVM.
Sporting open to partner at SAD
“This is a historic milestone in the life of the club. The last stage has been completed to accelerate the new era that has already begun”, he says. “The achievement of this objective constitutes the final step of the path that was defined in 2018, with the purpose of ensuring that the club would be master of its own destiny”, mentions the club on its website.
And he continues: “once control of the majority of SAD’s capital was assured on March 4, 2022, today, December 27, 2023, an end was put to the Financial Restructuring Framework Agreement signed in November 2014.”
According to Sporting, this is “a step that allows phase 2.0 of strategic planning to begin, creating the conditions for the entry of a strategic minority partnership in capital in SAD, so that there is a reinforcement of the investment policy, the improvement of the experience of all members and the globalization of the club”.
Adjustment in the price paid to BCP
Today’s agreement also led to an adjustment – provided for in the contract – of the amount paid by Sporting in the acquisition of VMOC from BCP in March last year, which went from 16.8 cents per VMOC to 27.9 cents.
The lion’s club, remember, had repurchased each of the 83,416,953 VMOC held by BCP for 16.8 cents, for a total of 14.015 million euros (when the bank had paid in euros corresponding to each title, i.e. 83.4 million euros). Now, the final amount to be paid by Sporting is 23.37 million euros – so it will have to pay another 9.2 million euros for these same titles so that they are equivalent to the value agreed with Novo Banco.
(news last updated at 00:56 on December 28)
2023-12-27 23:02:00
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