Aberdeen Football Club are looking to become a Private Limited Company (PLC) as part of a proposal issued to shareholders to help fund the Dons’ new stadium and training complex at Kingsford.
A general meeting where the proposal will be voted on is due to take place on 2 July 2019.
In a message on the club website, 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 £2million 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.”
As a public limited company, AFC is subject to Rule 9 of the City Code on Takeovers and Mergers. Rule 9 states that anyone who, together with associates, has shares which carry 30% or more of the voting rights in a public company has to make an offer to acquire all of the company’s issued equity shares.
Some of the proposed investors are unwilling to proceed while this Rule applies because they do not wish to be forced to make an offer for the entire equity share capital of AFC.
Stewart continued: “As a private limited company, this Rule will no longer apply, immediately unlocking £2million of investment. This will close the fundraising for phase one and allow the training facilities and community sports hub to be completed this autumn.
“Our ability to raise further funds by share subscription for phase two will be significantly enhanced by becoming a private limited company. It is the intention that both existing and new shareholders will be able to participate in the phase two share subscription.”