By Alexander Krassimirov
March 6 – Bulgaria’s CSKA Sofia has released further details of the club’s capital raising share offer and has formally launched an advertising awareness campaign for the release of the club stock and its entry on to the Bulgarian stock exchange.
Club president Alexander Tomov (pictured centre) said that CSKA will begin with the sale of 3 million shares at a nominal price of 3 lev (€1.5) per share. The shares are on open offer and can be bought in packages of at least 10 shares (30 leva/€15).
According Tomov, the ad campaign will be considered successful if the club manages to sell at least 1.4 million shares. Officially, the shares will be offered for sale on March 19 and can be purchased from any bank in the country. Buyers will collect their share certificates at the offices of the club’s stadium.
The initial share price had been set at 5 leva (€2.5), but it was reduced to encourage more supporters to participate.
“Now we have full transparency in the club. If this were not so, there was no way to get the permission of the Financial Supervision Commission to offer shares on the exchange. Shares are available for sale and can be purchased by anyone. Will have major shareholders and those who will buy a small stake. We expect thousands of our supporters to buy shares,” said Tomov.
Tomov also revealed that he personally has acquired 198,000 shares to help CSKA to deal with its serious financial situation.
“CSKA has to become a club for the supporters. Proceeds from the sale of the shares will go only to the club. This is the first time in Bulgaria and Eastern Europe. Anyone who has purchased shares will be able to participate in person or by his representative in the General Assembly of the club, which is becoming an important tool for decision making. The money from the shares sold will be received at the club as early as May this year. Proceeds will be used not only to cover the debt, but also for the development of the club and our youth academy. The actual price of the shares was 5 leva (€2.5), but we reduced it to 3 to allow more fans to buy,” said Tomov.
Tomov added that currently the club’s debts are at 15-16 million leva (€8 million). “CSKA debt is reduced drastically and it is manageable now. Debt restructuring is going very well. Currently the debt is 15-16 million leva”
CSKA said that it will now start legal proceedings against the former club owners, Titan AS. The club claims Titan owes the club more than 11 million lev (€5.5 million). “We had an agreement Titan to pay part of the old debts, but that did not happen. Titan owes a huge amount of money to CSKA. By first notary invitation the case is for about 11 million leva. Alternative understanding with Titan is impossible,” said Tomov.
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