The Athletic has celebrated this Friday a General meeting of shareholders decisive for the future of the entity, in which it has remained unanimously approved the capital increase of 181.8 million euros through the issuance of 972,082 new shares. This does not mean that the club will have this bag to undertake signings, but that, as the CEO Miguel Ángel Gil already reported after the meeting of the Board, it is “mitigate the adverse economic effects caused by the pandemic”. In addition, with the expansion, the entity incorporates a new strategic investment partner.
Miguel Ángel Gil and Enrique Cerezo transferred their shares to a new company, Atlético HoldCo S.A., one month ago. This company has the 65.98% of Atlético's share capital and it could subscribe that proportion in the capital increase, where current shareholders have a pre-emptive subscription right. Atlético HoldCo will do so and will contribute in the next few days about 120 million of the 181.8 as Miguel Ángel Gil has announced at the Board, and that is where the strategic investment partner from the United States appears. Atlético HoldCo has reached an investment agreement with funds managed by the company Ares Management Corporation, that has taken a share of the 33.96% of the capital of Atlético HoldCo, company of which Miguel Ángel Gil himself will continue to be the majority shareholder.
The rest of the shareholders, among which the Quantum Pacific fund stands out, what does he have 32% of Atleti and whose main owner is the Israeli Idan Ofer, they have a month (since it is published in the Mercantile Registry) to decide if they go to the extension and subscribe the percentage of shares to which they have a preferential right. If they do not, their participation in the club becomes proportionally less.
The club recovers, with the approval of this extension, a stability that was altered by the crisis of the pandemic and what caused Atlético some losses of more than 80 million of euros. The lack of public throughout this season plus the final stretch of the previous one has been a blow to the rojiblancas accounts, and for that reason, from within the entity, this Board was considered fundamental for the future of Atlético and its sports competitiveness.
However, the club maintains that this expansion does not imply that spending will skyrocket from now on. Atlético will continue with a containment policy in very difficult times due to the pandemic. Gil Marín explained in his day that, in addition to the setback caused by the coronavirus, it was “reduce the level of indebtedness motivated both by the investment in the new stadium as for the acquisition of players for maintain the level of competitiveness of the first team “.
What is Ares Management Corporation?
Atlético de Madrid presents in its statement to its new investment partner: “Ares Management Corporation is a world leading alternative investment manager offering its clients complementary primary and secondary investment solutions in the credit, private equity, real estate and infrastructure asset classes. Seeks provide flexible capital to support businesses and create value for their stakeholders and within their communities. By collaborating between their investment groups, they aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2021, including the acquisition of Landmark Partners, which closed on June 2, 2021, Ares Management's global platform had approximately $ 227 billion of assets under management with more than 1,600 employees operating in North America, Europe, Asia Pacific and the Middle East. “