Sporting bought back Novo Banco’s Mandatorily Convertible Securities (VMOC) for approximately 15.4 million euros (ME), increasing its stake in SAD’s share capital to 88%.
“Sporting Clube de Portugal announces that it has acquired 51,416,952 VMOC from Novo Banco, and that following the conversion of the above amounts, it will increase its participation in the share capital of Sporting SAD to 88%”Sporting said in a statement to the Securities Market Commission (CMVM).
The Lions say this is a “historic milestone” for completing the “final phase that will allow us to accelerate the new era that has already begun,” explaining that the “last step on the path set out in 2018, with the aim of ensuring that the club would become master of its own destiny”.
This operation was carried out by means of an advance on the revenues from the contract with the NOS, through Sagasta, in another financial operation that was also communicated to the CMVM and which results in a “net global increase of approximately 50 MU compared to the operation” last.
“The global value issued by Sagasta currently amounts to €113,900,000.00, with €95,247,805.00 allocated to Sporting SAD and €18,652,195.00 to Sporting Comunicação e Plataformas, SA”explains.
According to Sporting, the net proceeds from this operation enabled Sporting SAD to restructure its bank debt, thereby wiping out the debt. “originally owned by Novo Banco, SA (with an outstanding capital of €35,403,508.62), excluding finance leases”.
“As a result, the company changed its financial exposure to Sagasta only, excluding finance leases”explains the document.
The amounts of this transaction with Novo Banco increased the amounts involved in the repurchase of Millennium BCP securities, carried out in March 2022, by nine MU, to a total of 23.7 MU.
Sporting believes that this Tuesday marks an “end point” for the financial restructuring framework agreement signed in November 2014, allowing it to enter a new cycle.
“A cycle in which the club can continuously and unequivocally compete for leadership in all sporting competitions, in a sustainable and persistent manner, with a focus on long-term value creation”defend the lions.
Sporting also talks about the start of a “2.0 phase of strategic planning”, which will create the conditions for the entry of a “strategic minority equity partnership in SAD, so that there is a strengthening of the investment policy, the improvement of the experience of all members and the globalization of the club”.
The club owned approximately 84% of SAD’s share capital, a value which now rises to almost 89% with the change in ownership of Novo Banco’s Mandatory Convertible Securities.
VMOC goes back to the leadership of José Eduardo Bettencourt, who used this instrument in 2011 to inject 55 ME into the ‘Leonine’ SAD, valid until 2016, in a process later renegotiated by Bruno de Carvalho and Frederico Varandas .
Source: DN
