Ron pays £3.5 million for 22.650 million shares

[FilipinoHibs]

Companies house filing today shows that Ron paid £3.5 million in two separate transactions for a total of 22.650 million new shares.
7.8m at 16p a share and 14.84m at 15.25p a share.
The former is likely to be a cash injection. The latter likely to pay off Farmer's mortgage.

Together with HFC's share (approx 61 million) he holds just under 67% of the new 125 million shares.

If he paid 4p a share for the 61m shares the total investment would be around £6 million, the figure widely quoted.


https://beta.companieshouse.gov.uk/c...filing-history

[cocteautwin]

It’s good to get some clarity on the actual transaction. The capital injection clears off the STF loan and leaves us debt free with spare cash


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[FilipinoHibs]

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It’s good to get some clarity on the actual transaction. The capital injection clears off the STF loan and leaves us debt free with spare cash


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Yes great news. We really own all the stadium and facilities now plus £1.25 million plus the £500k saving from the mortgage payments for six years. Feel much happier about things now.

[cocteautwin]

What’s the transaction at the holding company though? How is Bydand Sports LLC financed? I wonder if they’ve taken out a loan out to finance the injection in to Hibs and then secured that loan with a charge over the assets of Hibs?


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[BSEJVT]

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What’s the transaction at the holding company though? How is Bydand Sports LLC financed? I wonder if they’ve taken out a loan out to finance the injection in to Hibs and then secured that loan with a charge over the assets of Hibs?


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Not a chance that Farmer & Petrie would have permitted this.

It would have cut straight across everything they have worked for in last 10 years.

As part of due diligence, they would have ensured that purchaser had means available to complete the transaction without recourse to any borrowing loaded on the club.

Of that I am absolutely 100% certain

[Todi114]

Due diligence
The difference between Hibs and any other club is their owners didn’t need to sell
i’m sure sir Tom and Rod Petrie will have made sure Ron had enough money to help Hibs prosper in the future

[Tyler Durden]

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Not a chance that Farmer & Petrie would have permitted this.

It would have cut straight across everything they have worked for in last 10 years.

As part of due diligence, they would have ensured that purchaser had means available to complete the transaction without recourse to any borrowing loaded on the club.

Of that I am absolutely 100% certain

I agree and when you look at Gordon’s background and his source of wealth, he ticks all the boxes.

[FilipinoHibs]

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Not a chance that Farmer & Petrie would have permitted this.

It would have cut straight across everything they have worked for in last 10 years.

As part of due diligence, they would have ensured that purchaser had means available to complete the transaction without recourse to any borrowing loaded on the club.

Of that I am absolutely 100% certain

Yes agree and the returns even over 5 years would not be good enough to pay off the loan. In this new credit climate post 2007, no bank would make such a loan

[Pedantic_Hibee]

So let me try and get my head around this.

He’s injected £1.25m into the club and separate to this, we are also £3m better off over the next six years due to the 500k loan being paid up?

[FilipinoHibs]

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So let me try and get my head around this.

He’s injected £1.25m into the club and separate to this, we are also £3m better off over the next six years due to the 500k loan being paid up?

That is it. We own all the assets if the club. And over 6 years start £3m plus £1.25m better off. Money may be used for indoor training facility and build the academy. Those are Ron's priorities.

[Pedantic_Hibee]

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That is it. We own all the assets if the club. And over 6 years start £3m plus £1.25m better off. Money may be used for indoor training facility and build the academy. Those are Ron's priorities.

And in one fell post, a big Kickback bubble has burst.

Hard lines, paupers. Keep propping your club up to stay afloat 🕺🏼

[James Stephen]

Nice one Sing Hibs, thanks for posting!

[FilipinoHibs]

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Nice one Sing Hibs, thanks for posting!

Thanks that will shut up the Jambos up and the flat earth Hibs moaners.

Also have to thank Tom Farmer as he has written off a considerable amount of the £9 million he loaned us to pay off the Bank of Scotland - nearly £4 million or about twice as much FOH are in hock to Budge.

[Jack]

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What’s the transaction at the holding company though? How is Bydand Sports LLC financed? I wonder if they’ve taken out a loan out to finance the injection in to Hibs and then secured that loan with a charge over the assets of Hibs?


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According to fan director Power on the Bounce ...

How has that been funded? Eg. Personal wealth, other investors (who?)
Bydand Sports LLC has been set up by Ron (Personal Wealth) to complete the share transfer and ownership. It’s a nod to all his other Bydand Limited Liability companies and his Scottish roots.

[HH81]

Good news time to push on now.

[Caversham Green]

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What’s the transaction at the holding company though? How is Bydand Sports LLC financed? I wonder if they’ve taken out a loan out to finance the injection in to Hibs and then secured that loan with a charge over the assets of Hibs?


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Not on the basis of currently available information. The only new security is between the club and Bydand - and will only be relevant to potential debts between those two companies. How Bydand have financed the deal is their problem. I suspect though, that Ron had a fair amount in the bank from the sale of his businesses and it was all or mostly done in cash.

Just one correction to the OP - the first tranche of shares was 16p per share rather than 15p. I also think his shareholding is slightly over 67% rather than slightly under - did the sums yesterday but didn't save them, so I might be wrong there (although that's how Rod put it at the press conference).

[greenginger]

I did a tally up of the Nominee/Investment Co. share holder holdings from the last Company statement .

Assuming the last two share registrations in June were HSL , the HSL and other small share holders total at 23.38 % of the 125 million shares now issued.

The large nominees holdings amount to 9.5 %

Perhaps HSL should be targeting some of these Nominees with offers to buy their holdings ?

[FilipinoHibs]

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Not on the basis of currently available information. The only new security is between the club and Bydand - and will only be relevant to potential debts between those two companies. How Bydand have financed the deal is their problem. I suspect though, that Ron had a fair amount in the bank from the sale of his businesses and it was all or mostly done in cash.

Just one correction to the OP - the first tranche of shares was 16p per share rather than 15p. I also think his shareholding is slightly over 67% rather than slightly under - did the sums yesterday but didn't save them, so I might be wrong there (although that's how Rod put it at the press conference).

Yes 16p. Have corrected thanks. Valuation I worked out was on 16p. I calculated nearly 67% but used 61m as HFC shares but think shares a little higher so probably just over 67%. $8 dollars is around 10% of what he got for selling his companies so think he has funded from his own capital. Think any further investment will be through loans from him as 10% the limit of his own capital that he will want to put up.

[green day]

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So let me try and get my head around this.

He’s injected £1.25m into the club and separate to this, we are also £3m better off over the next six years due to the 500k loan being paid up?

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That is it. We own all the assets if the club. And over 6 years start £3m plus £1.25m better off. Money may be used for indoor training facility and build the academy. Those are Ron's priorities.

Thanks for the clarity, all sounds good - I wonder how the Simon Pias and David Lows of this world will be able to spin this in a negative way

[FilipinoHibs]

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Thanks for the clarity, all sounds good - I wonder how the Simon Pias and David Lows of this world will be able to spin this in a negative way

"Ron has borrowed the money from future season ticket sales and intends to sell ER to developers in a month's time. Hibs will then move to play home games at Spartans. Ron must go. Save ER".

[RyeSloan]

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Companies house filing today shows that Ron paid £3.5 million in two separate transactions for a total of 22.650 million new shares.
7.8m at 16p a share and 14.84m at 15.25p a share.
The former is likely to be a cash injection. The latter likely to pay off Farmer's mortgage.

Together with HFC's share (approx 61 million) he holds just under 67% of the new 125 million shares.

If he paid 4p a share for the 61m shares the total investment would be around £6 million, the figure widely quoted.


https://beta.companieshouse.gov.uk/c...filing-history

Is it worth speculating then that shares in Hibs are worth approx 16p a share (and the club therefore £20m with the new total of shares issued) and that HSL have been getting them for 4p and Farmer sold his holding for approx a quarter of their ‘true’ value?

Basically I’m curious where the 16p came from, unless of course it’s just a figure that was agreed upon to limit dilution to existing shareholders?

[Keith_M]

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Yes great news. We really own all the stadium and facilities now plus £1.25 million plus the £500k saving from the mortgage payments for six years. Feel much happier about things now.

I have some concerns about our new owner, probably the same as most Hibbies, as I know nothing about the guy and only he knows what his plans are for the club. We'll just have to see how it all turns out, I suppose.

[Baldy Foghorn]

I want to know, a) why a new company has been set up, b) how has Ron acquired 66% of share holding.

Communication is key, as at the moment it looks murky to me......

[Keith_M]

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I want to know, a) why a new company has been set up, b) how has Ron acquired 66% of share holding.

Communication is key, as at the moment it looks murky to me......

STF and Rod owned their shares in Hibs in the same manner, through a jointly owned limited company. It appears Gordon has done the same.

STF and Rod's company owned 66% of existing shares. Gordon has bought that from them, so owns the same percentage.

[FilipinoHibs]

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Is it worth speculating then that shares in Hibs are worth approx 16p a share (and the club therefore £20m with the new total of shares issued) and that HSL have been getting them for 4p and Farmer sold his holding for approx a quarter of their ‘true’ value?

Basically I’m curious where the 16p came from, unless of course it’s just a figure that was agreed upon to limit dilution to existing shareholders?

I think the 16p and 15.25p came from wanting to give Ron control but well short of 75% of shares to avoid a full takeover and the discounted price that Farmer was willing to accept for the loan he gave Hibs to clear the £9 million Bank of Scotland debt and inject some fresh capital. Allowing for the fact that the existing shares would be sold at 4p a share

[Baldy Foghorn]

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STF and Rod owned their shares in Hibs in the same manner, though a jointly owned limited company. It appears Gordon has done the same.

STF and Rod's company owned 66% of existing shares. Gordon has bought that from them, so owns the same percentage.

I thought the fans owned just short of 40%.

[FilipinoHibs]

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STF and Rod owned their shares in Hibs in the same manner, through a jointly owned limited company. It appears Gordon has done the same.

STF and Rod's company owned 66% of existing shares. Gordon has bought that from them, so owns the same percentage.

They owned 59% and 22.650 million shares were issued to inject capital and pay off the mortgage. This took Ron's holding to 67% on the expanded shares.

[son of haggart]

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I thought the fans owned just short of 40%.

If they are new shares then presumably they dilute the percentage of total that HSL holds

[Keith_M]

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They owned 59% and 22.650 million shares were issued to inject capital and pay off the mortgage. This took Ron's holding to 67% on the expanded shares.

That makes sense, cheers.

[FilipinoHibs]

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If they are new shares then presumably they dilute the percentage of total that HSL holds

Yes that is correct. Prior to issuance of the new shares and the takeover Non HFC held 41% now fallen to just under 33%.