Rome, away from the stock exchange to invest with more freedom

For the second time, in two years, the Rome try to exit Bag (the so-called “delisting”) with a new one Public Purchase Offer (Takeover bid) which received the approval of the Consob. For the delisting it is necessary to have 95% of the total shares in circulation and the Friedkin group it controls almost 90% of them today. The last time (November 2020) it started from 85% but the majority group has since raked in another float to get closer to the necessary threshold.

The resources mobilized for the new takeover bid they are more substantial (up to 27 million) to offer 43 euro cents per share against 11 offered in the previous one. Moreover, the delisting could be finalized even if the fateful threshold is not reached, if the stock market control bodies believe (which is very likely) that the stock no longer meets the minimum free float requirements. For small shareholders it could be the last chance to liquidate: with the exit from the market they would find themselves with securities that are no longer publicly traded and therefore cannot be liquidated with financial intermediaries. There will certainly be those who decide to keep them, for purely emotional reasons, but the way out of the Stock Exchange for Rome seems, in any case, irreversible.

A story not exactly crowned with success should thus end on 8 July: the Giallorossi shares were placed in May 2000 (in full it was Sensi) for € 5.50 but had already lost 78% of their value, after just a year and a half, despite the Scudetto having meanwhile arrived on the Giallorossi shirts. By trading volume, free float and price significance, the presence of AS Roma in the list of Piazza Affari it is now symbolic. More generally, the era of listed clubs that seemed destined, twenty years ago, to become the new financial frontier of football seems to have definitely faded. In Italy they remain Juventus and Lazio while abroad only Ajax, Borussia Dortmund, Porto, Lyon, Manchester United, Besiktas and a few other European clubs remain on the lists while there are no ongoing listing projects.

With the exit from the Stock Exchange, Roma will save some of the costs necessary today for the fulfilments and obligations required by the listed status and above all it will acquire operational streamlining in decisions e ability to fund the club with more flexibility and fewer constraints.

But there is a fundamental reason that makes the presence on the stock market less convincing today: many football clubs are at a loss and it is therefore right that controlling shareholders support the efforts necessary for financial rebalancing. Sharing with small shareholders the huge capital increases that a company has to decide to cover structural budget deficits is not logical on the financial plan. The bag is for raise capital around a project in which risks but also results are shared. A listed company must offer shareholders a return on risk, especially when they are largely individual investors. In addition (in this case) fans attracted by an emotional bond that mitigates the perception of risk.

Roma has not yet completed the process of restoring financial equilibrium e the Friedkin family has not finished investing yet. Indeed, in these days there is talk of an imminent capital increase. Despite the injections already profuse, the net worth is negative, both at the group and at the level parent company. The emergency legislation enacted to support Italian companies during the Covid emergency legitimized the questionable practice (of which Roma, like other clubs, made use of) of postponing loss coverage to 2026, but the balance sheet ending June 30 seems to herald a new three-figure loss. In this scenario, with the controlling shareholder ready to put his hand to the portfolio again, it seems an act of equity to subtract small shareholders remained in the corporate structure to this further sacrifice.

Mourinho's new Rome for next season

Look at the gallery

Mourinho’s new Rome for next season

Abraham jersey: discover the offer

#Rome #stock #exchange #invest #freedom

Leave a Reply

Your email address will not be published.