Grandland Decoration, a building decoration enterprise based in Shenzhen, announced yesterday that it has decided to buy a minority stake in Guangzhou Evergrande Football Club. They will invest 150 million yuan ($23.5 million) in the Guangzhou club, winners of this year’s AFC Asian Champions League, according to Chinese financial news website Hexun.com.
The company is to purchase 3.75 million common shares, which represents approximately an 0.85 percent to 0.99 percent share of Evergrande FC, for an aggregate of 150 million yuan ($23.5 million).
After its official listing on the New Third Board on November 6, the Chinese Super League club announced its plan to bring in new investors to the club. The franchise plans to invite 35 strategic investors and issue 3.7879 million to 66.1765 million shares at 40 yuan per share with the aim of raising between RMB152 million and RMB 2.647 billion.
At present, the total equity of Evergrande FC is 375 million shares, of which 60% is owned by Evergrande Real Estate and 40% by the Alibaba Group.
When the issue is successfully completed, the market value of Evergrade FC will be between 15.15 billion yuan and 17.65 billion yuan.
The payment of the share subscription is set to be completed by December 8.
Source: Hexun.com
Proofread by John Devlin