BFC cash injection

I don’t think anyone is saying it’s fine to lose money, but becoming sustainable might not even be possible when stuck in league 1 while trying to keep a successful academy and while renting a 20,000+ seat stadium.

If salaries increase by 4x and but TV money increases 8x that’s an indication the championship is a lot more likely to be a good base for a club to be sustainable than league 1.

 

For some reason it's taken the Hong Kong website a long time to publish the full details of the £3m invested in the Summer but they are now on there. I think the resultant ownership percentages are already public knowledge but the details from the issue are below:-

A huge 150,000,000 shares were issued in BFC Investment Company Limited at (a near worthless) 2p each in return for the £3m cash injection. This doubled the total number of shares to 300,000,000.

Of the new 150 million issued, Neerav took 100,052,562 shares for £2,001,051, JAQ 18,000,000 shares for £360,000 and the Crynes 31,947,438 shares for £638,949.

Neither Chien Lee nor Pacific Media Group took any part in this share issue and the impact of the doubling of the number of shares in circulation thus halves their respective percentage holdings. Neerav's investment takes him from 55.59% to 61.14% and JAQ goes from 10.00% to 11.00%. The Crynes maintained the same percentage at 21.30%. The full current holdings are:-

A Shares

Abhajay Trade and Commerce (Neerav Parekh) 183,433,824 shares which is 61.14% of the company (77.69% of the A shares)

Jamakepe Investments (Julie Anne Quay) 33,000,000 shares which is 11.00% of the company (13.98% of the A shares)

Chien Lee 13,800,000 shares which is now just 4.60% of the company (5.84% of the A shares)

Pacific Media Group 5,871,300 shares which is now just 1.96% of the company (2.49% of the A shares)

B Shares

Oakwell Holdings Limited (Crynes) 63,894,876 shares which is 21.30% of the company

(A reminder that the main distinction between the A shares and B shares is that the holder(s) of over 50% of the A shares appoint up to 4 members of BFC Investment Company's Board, the B shares just 1).

 

Are there any implications for the future of the club regarding the number of shares in a hyperinflation stylee?

Or does it not matter as long as the percentages are the same?

I'm a bit thick, so sorry if it's a daft question.

 

Looking at Neerav’s family business, it’s been going for around 35 years.

What’s the business worth? Can’t seem to find that info.

 

It’s a 2 pronged approach. Not only does it allow money to be put in, but because Lee and Conway haven’t purchased, it massively dilutes their shares making them irrelevant almost.

Ifaik, it makes no difference to anything in regards the share numbers. Just a bit of a pain when typing details up

 

It would cost more to print the shares out than they're worth.

 

Not sure, but the below article proves he has plenty of money.

https://www.business-standard.com/a...-apartments-for-rs-170-cr-124121400397_1.html

someone might know better than me, but is rs 65 crore equal to £650m?

 

65 crore is 650 million rupees which at the current exchange rate is about £6 million. While £6 million is nothing to be sniffed at for an apartment, I'm struggling to think what a £650 million apartment would look like. I'm guessing it would include the moon on a stick in a swimming pool filled with liquid gold.

 

Is it not nearer to 6 mill?

 

Told you someone will know better than I