CMVM suspends FCP SAD shares due to revelations from Pinto da Costa’s interview

The Securities Market Commission (CMVM) decided to suspend trading in the shares of SAD (sports corporation) of Futebol Clube do Porto (FCP), after, on Monday night, the president of FCP, Jorge Nuno Pinto da Costa, gave an interview to SIC Notícias.

As normally happens, the capital market regulator did not indicate what was the basis of its decision: the CMVM says it awaits “the disclosure of relevant information to the market”. O Express knows that the interview is the reason for the determination of the entity chaired by Luís Laginha de Sousa.

The decision was taken at 9:25 am, but only communicated after 10 am. FCP SAD shares closed trading at 1.15 euros on Thursday, having not been traded on Monday or this Tuesday, now as determined by the CMVM.

Jorge Nuno Pinto da Costa’s interview, given in an electoral context and in which André Villas-Boas, his opponent, was one of his targets, is the reason for the suspension of share trading, which shows that the CMVM administration considers that information was given by the president of SAD that had not been transmitted to investors. The authority must ensure that information is passed on equally to all shareholders and investors.

What Pinto da Costa said

Regarding Quadrantis, the entity that will be financing SAD, Pinto da Costa told SIC that, “with the financing that is being done”, the fund will charge “around half the interest” that the club currently pays, excusing to advance values ​​and send further explanations on financial issues for a presentation that will take place on Friday. In SAD’s report and accounts for the first fiscal semester, Quadrantis is not even mentioned.

In the interview, Pinto da Costa also criticized the CMVM for having decided to open an investigation into the purchase of SAD shares, for having made acquisitions less than a month before the presentation of accounts, which is prohibited by capital market law. “Is this a topic? For God’s sake,” he stated.

It is not the first time that the regulator has asked FCP’s SAD for explanations due to Pinto da Costa’s statements. The CMVM asked SAD for explanations at the beginning of the year, for having spoken of positive equity when SAD’s equity situation was negative – then, SAD had to amend and explain what was at stake.

FCP will carry out “debt reformulation”

After the suspension of the actions by the CMVM, FCP’s SAD, however, made a statement to the market: “it hopes to definitively close the contract with a reputable international company, with recognized experience in optimizing commercial revenues related to large sports equipment, by the 30th of June 2024.”

According to the statement, and confirming something already reported, the partnership takes the form of “a minority stake in one of the companies with the commercial rights of the FC Porto Group, through the injection of capital for an estimated amount between 60 and 70 million euros, as previously communicated to the market, the company will thus increase its equity capital by the same amount”.

A month ago, the newspaper “Record” suggested that it would be Sixth Street, which has an agreement with Real Madrid. This company will be a shareholder of the company to be formed and not of SAD itself (as is happening at Sporting, which is looking for a partner for the company).

Even so, in the note to the markets, additional information was given: “Despite not having yet closed financing in this regard, Futebol Clube do Porto – Futebol, SAD is negotiating a reformulation of its medium and long-term debt, in a estimated amount of 250 million euros, at a competitive interest rate in market terms”.

FCP’s SAD liabilities were, at the end of 2023, 513 million euros, presenting slightly lower assets, resulting in negative equity of 9 million euros. Bank loans, bond issues, commercial paper and factoring amounted to around 220 million on that date.

The entities with which SAD is closing business are not mentioned in the statement, neither in the case of the commercial rights partnership, nor in the financing to be obtained.

News updated at 11:20 am with more information, namely the statement from FCP SAD