Club EGM Thursday
Wednesday, 6th Aug 2003 15:32
Thursday evening sees an EGM at Portman Road, the first step towards the club's share issue. Town's shareholders will vote on whether to have a new PLC company inserted above the existing Ipswich Town Football Club Company Limited.
The new company needs to be formed so that the share issue can take place. Club chief executive Derek Bowden explained why in an exclusive interview for the new issue of TWTD: "In order for us to have a public share issue we have to be a PLC. We can't convert Ipswich Town Football Club Company Limited to a PLC because its balance sheet is shot to pieces because of the administration.
"So, we have to insert a company above it called Ipswich Town PLC. The circular which has just been sent to shareholders is about the EGM on August 7th which is designed so that they vote in favour of our being able to change the articles of association to insert the new company above the existing one.
"There'll then be another document, the offer document, which is simply a one-for-one offer of club shares by the PLC. Their old shares become shares in the new company, exactly the same shareholding, exactly the same directors.
"At this point the new company has a share issue, loan stock money comes in, new money comes in and the shareholding is diluted, by how much depends on how many shares are sold."
Town are setting no official targets for the share issue which is expected to take place in October.
The minimum investment is £200 while no individual investor will be able to own more than 15% of the new shareholding.
Derek Bowden tells TWTD more about the share issue, the CVA and the club's finances in general in the extensive interview. Issue 68 of TWTD is available from sellers all around Portman Road at the Reading and Kidderminster games or by subscription via " target="_blank">http://www.twtd.co.uk/stall
Photo: Action Images
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