SAD of Futebol Clube do Porto gave explanations to the market and the Securities Market Commission (CMVM) at 11 am this Tuesday, April 2, to contextualize the statements made by its president, Jorge Nuno Pinto da Costa. However, they were not enough for the ban on share trading to be lifted at the end of the afternoon.
In a mid-morning statement, SAD do Porto explained the partnership for the commercial exploitation rights of SAD do FC Porto, although not identifying with whom the deal will be done, and mentioned a “reformulation of its debt”, in the amount of 250 million euros, also without indicating which entity it is negotiating with, and speaking of a “competitive interest rate in market terms”.
These were the explanations given by FC Porto’s SAD after the CMVM ordered the suspension of share trading on the stock exchange, but, even after the disclosure of such information, the regulator maintained its decision: there is no share trading.
Thus, this Tuesday there was no trading on either of the two occasions in which FCP’s SAD shares could change hands: taking into account the reduced liquidity, FCP’s SAD shares are not in continuous trading, they can only be traded by auction, twice a day.
When questioned, the CMVM did not respond to the Express about why the suspension of actions has not yet been lifted, nor was it possible to obtain a response from the FCP communications department.
The Portuguese stock exchange has already closed this Tuesday, so it will only be this Wednesday that transactions in blue and white SAD securities will be possible again. And it is still not certain, because trading has not yet been permitted: it is the announcement of the suspension of trading that continues in the site of the regulator chaired by Luís Laginha de Sousa.
The CMVM had requested additional information earlier this morning because, in the interview with SIC Notícias on Monday, Pinto da Costa made revelations about aspects that had not yet been disclosed to the market, namely about the financing costs with the Quadrantis fund.
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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 MAKE “DEBT REFORMULATION”
In this morning’s statement, following the CMVM’s first request, FCP’s SAD said that it is waiting to “definitively close the contract with a reputable international company, with recognized experience in optimizing commercial revenues related to large sports equipment, by 30 December. 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.
