Heart of Midlothian has confirmed that Brighton & Hove Albion owner Tony Bloom has made a proposal to invest capital of £9.86 million into the Edinburgh football club for which he would receive a 29% stake in the club via non-voting shares.
A consultation period with the club’s majority shareholders – the Foundation of Hearts (FoH) – will now begin.
The consultation will explain the proposal to FOH members and ascertain their views before asking them to vote on the proposed investment.
A majority of FOH members’ acceptance is required — as determined by the FoH board — for the proposal to be successfully carried forward.
Following the FOH consultation process, an Extraordinary General Meeting of the club’s shareholders will be called in order to formally approve the transaction.
“In the meantime, the transaction remains subject to entry into legally binding documentation, SFA approval and other normal course regulatory requirements,” said Hearts.
FoH said: ” … the Foundation of Hearts Board believe that this investment in the club presents an opportunity to realise the club’s full potential and take it into a new era.
“It is the recommendation of your board that you vote in favour of accepting the proposal. We hope that, by the time you have read the following information, digested and considered it, you are in agreement …
“Tony Bloom’s proposal is to invest capital of £9.86m into Hearts in exchange for a shareholding equating to 29% of the club’s issued shares. The shares allotted to him will be a new class of ‘non-voting’ shares in the club, meaning that these shares will have no voting rights attached to them.
“This means that the voting rights of the club’s existing shareholders, including FOH as the majority shareholder, will not be diluted as a result of the proposed investment. Nothing will change as regards shareholder voting rights in the club.
“Should the proposal be accepted, there will be no change to FOH’s current shareholder voting rights in the club which will remain at 75.1%.
“This proposal would see Tony Bloom personally investing in the club, as an individual.
“If the proposed investment goes ahead, Tony Bloom will be entitled to one seat on the club’s board. Tony Bloom will not himself become a member of the club’s board but will appoint someone on his behalf …
“Come voting time, a simple majority – more than 50% – of votes cast is required (as determined by the board of FOH) in order to confirm that the FOH votes in favour of the club proceeding with the investment …
“This opportunity has not come around by accident. Tony Bloom has done his due diligence (as has the club) and he has recognised both the importance of Heart of Midlothian Football Club and its significant potential.
“His past and ongoing successes with Brighton & Hove Albion in England and Royale Union Saint-Gilloise in Belgium are there for all to see, and with Hearts, he sees the chance to play a part in another success story. He believes Hearts can disrupt Scottish football, and he wants to be a part of a new glorious chapter in Hearts’ history …
“This proposed investment is being made by Tony Bloom on a personal basis as an individual. Although Tony Bloom does have ownership interests in three other football clubs he has never sought to tie those clubs together in a ‘multi-club system’. The transaction has also been structured carefully to ensure that it remains compliant with football regulations relating to multi-club ownership.”