As advised previously, the Board of Directors of Everton Football Club Company Limited have released details to shareholders regarding the capital restructuring of Everton Football Club.

Subject to approval by shareholders the board will be authorised as follows: (Approval is guaranteed given Blue Heaven Holdings currently own 77.2%, above the 75% threshold required)

Everton will issue 100,000 new shares of £1.00 each (identical to the existing 35,000 shares in issue).

Everton will allot 66,667 of the new shares to Blue Heaven Holdings at the price of £3,000 a share. As a result, Everton’s balance sheet will see an injection of £200 million of equity. (I should stress that does not mean £200 million of new money.)

The £200 million will consist of £50 million in cash received in November 2020, £50 million of cash received this month, February 2021, and the conversion of £100 million of existing shareholder loans to equity.

The board will also authorise that the additional 33,333 shares issued but not allotted, may be allotted to Blue Heaven Holdings at some point in the future should it be required. This will allow the club either to convert more shareholder loans to equity or be in receipt of further cash injections from Blue Heaven Holdings.

The new share issue strengthens the balance sheet of the club and brings Farhad Moshiri’s investment in Everton to £450 million since February 2016, 5 years ago. The balance sheet will now carry £250 million of shareholder loans.

As a result of the allotment of 66,667 shares, Blue Heaven Holdings will increase its shareholding in Everton from 27,031 shares (77.2%) to 93,698 shares (92.16%).

The club and Farhad Moshiri stress the desire to continue a “positive relationship with minority shareholders”.

As an aside, Bill Kenwright’s shareholding in the club drops from 5% to 1.72%