Post-777 auction, B.Z. expresses potential implications for Hertha.
Jumpin' Jack Nothing' Changed: The Auction that Didn't Shake Things Up
It's the announcements we wait for, but in this case, it was more of the same!
The day had arrived, ten a.m., Friday morning, when all the shared stocks held by investor 777 in Hertha BSC, FC Genoa, Sevilla, Standard Liège, Red Star Paris, and Vasco da Gama were up for grabs in the courtyards of the law firm Cadwalader, Wickersham & Taft LLP, Manhattan. This bit of news had been previously leaked by football investigation palace, Josimar.
How's this for a twist? A-CAP clinched the shares in the end.
A-CAP is the principal creditor who had demanded a triple-digit loan from 777 or its subsidiary, a whopping 350 million euros. However, paying that sum was like asking a cat to do the Charleston. So, an auction was organized through an insolvency administrator, kept hush-hush till then, perhaps to reduce the riff-raff at the bids.
In the end, A-CAP snatched the shares for themselves through a debt-equity swap. Now, just what shares of which clubs A-CAP won is still under the wraps as is the amount exchanged in the books. It's possible that the claims were swapped 1:1 for shares.
One thing's certain: If the swap amount is high, A-CAP can milk more coin for a future sale of those shares.
What does this mean for Hertha BSC, then?
Don't break a sweat! The previous heavy hitter has simply switched hats to be the major Hertha shares holder of the KGaA.
Snarkily enough, the two seats on Hertha BSC's supervisory board of the KGaA, after giving the boot to Josh Wander and Steven Pasko of 777, were accepted by none other than Andy Anson, CEO of the British Olympic Association, and David Ellis Shaw, Portfolio Manager at A-CAP...
Ta-dah! The game of musical chairs never ends in the financial world, does it?
The financial world saw A-CAP, the principal creditor, acquire the shares of several sports clubs through a debt-equity swap. This move could potentially bring more financial gain for A-CAP if the swap amount is high, meaning a future sale of those shares. With the acquisition, Andy Anson, CEO of the British Olympic Association, and David Ellis Shaw, Portfolio Manager at A-CAP, took the two seats on Hertha BSC's supervisory board, indicating a shift in the club's financial stance.
