Club news

THE INCREASE IN THE CLUB’S CAPITAL

24 Oct 2014
On Thursday, president Tino Fernández explained the operation to increase the capital of Deportivo. There will be five phases in the process and the goal is to collect between €6 and €7.8 million.

Deportivo released the details of the operation targeting to increase the capital of the club. The target is to collect €6 million, though it’s also possible to reach the €7.8 million. The operation will last 25 months and will be divided in five phases, with the first phase beginning on January 1st.

First to all the increase in the club’s capital must be approved by the shareholders. It’s one of the reasons for the meeting that will take place at the end of November. In order to get the okay the board of directors needs a quorum of 25% plus to pass the bill.

It must be reminded, and the president has always insisted in this, that the club is not forced to complete the increase in the capital, instead the agreement with the Tax Agency and the major creditors is to simply approve the bill that will be voted in November and to at least reach the €1.5 million by the end of 2015.  That’s why the shareholders meeting is so important.

President Tino Fernández addressed the media on Thursday and presented the five phases in the operation. He firstly emphasized the importance to pass the bill during the shareholders meeting, ”I wouldn’t like to live again the same situation in which we don’t have an agreement with the Tax Agency. Deportivo reached a point in which there wasn’t any single euro available. Right now all the payments are up to date. So, we cannot play with the food. Football is like an iceberg, you see a part and the other is hide.”

Later Fernández explained the five phases in the operation. Each share will be sold in €60.10. The first two phases are reserved to the current shareholders. In the first phase (from January 1st to May 31, 2015) each shareholder can double their participation in the club. It means that a shareholder having 10 shares can buy new ones until the limit of 20 shares.

In the second phase (from June 1st to October 31st, 2015) the shareholders can buy shares until the limit of 1,500 (€90,150). It means that a single shareholder cannot owe more than the 1.5% of the club. In this way the board of directors can be sure that Deportivo won’t be bought by a single person or corporation, which is one of the demands that the shareholders have expressed in past meetings.

This means that the highest amount that can be recollected with the increase of the club’s capital is €7,819,971.60. The third phase (from November 1st, 2015 to March 31st, 2016) is focused in the season ticket members that aren’t shareholders. In this phase the conditions are the same as the new shareholders cannot buy more than 1,500 shares, though the target is reduced from €7.8 million to €6 million.

The final two phases are focused in persons and entities that aren’t currently related to Deportivo. In the fourth phase (from April 1st to August 31st, 2015) the club will try to get the support of the companies that currently don’t owe shares of the club, while in the fifth (from September 1st, 2016 to January 31st, 2017) the club will invite the general public. If the limit (between €6 and €7.8 million) is reached before any of these phases start then simply the operation will end at that point.

Depor’s president invited all the supporters to take part of this operation, ”Currently we are 23,014 shareholders and we want to be more. This is a step to resolve the unbalance in the club’s capital. If the creditors are making an effort forgiven part of the debt, then the owners of the club should make more than just attending to the stadium.”

ARCHIVE NEWS OCT/14

ZAPPING

 

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