Juventus lost 75 million euros between July and September. The quarterly red forced the company to proceed with a capital increase of 200 million, which was approved by the board of directors on Monday and will be put to the vote at the shareholders’ meeting scheduled for November 23rd. Exor, the club’s majority shareholder with 63.8%, has already committed to underwriting the capital strengthening pro-rata for a total of 128 million. In the next few days the Agnelli-Elkann family holding will pay an advance of 80 million “in order to strengthen the capital and financial structure of the company pending the execution of the capital increase”.
The guarantee consortium
It remains to be seen whether the other Juventus shareholders will want to join the capital increase, the third in the space of four years for a total of 900 million paid into the club’s coffers to cover the losses. In the past, the British fund Lindsell Train, the second largest shareholder with 11.4%, criticized the management of the club which lost 123 million in the last financial year. To avoid surprises, however, “the company is evaluating the opportunity to set up a consortium for the subscription and release of any new shares that may not be subscribed and, to this end, has initiated contacts with primary banking institutions”. In the last capital strengthening, concluded in 2021, the guarantee network was laid out by Goldman Sachs, JP Morgan, Unicredit and Mediobanca.
The stock split
The capital increase should approximately be carried out in the first quarter of 2024. Before this operation, the board of directors proposed to carry out a share split according to which each shareholder will receive a new Juventus stock for every 10 shares owned. The club’s share capital will thus go from over 2.5 billion shares to just over 250 million, which should simplify the administrative management of the same, while improving the perception of the Juventus title on the market. Since the beginning of the year, Juventus has lost over 20% on the Piazza Affari, slipping to 660 million in market capitalisation.
2023-10-23 18:52:06
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