As part of a process to ensure that Lincoln City Holdings (“Holdings”) is more suited to future meaningful investment, an extended process has recently been completed which will see new articles of association being adopted by the company.
Of particular interest to minority shareholders of Lincoln City Football Club Company Limited (“the Club”) is the inclusion of a specific provision which will benefit such shareholders of the club in the event that there is a change of control in the ownership of Holdings.
This particular provision will state that subject to Holdings continuing to be the majority shareholder in the Club, any third party who makes an offer to purchase a controlling interest in Holdings must make the same offer to each of the Club’s shareholders to buy their shares for the same price per share as that which is offered to each shareholder of Holdings. However, there will be no obligation on any shareholder of the Club to sell their shares if they do not wish to do so.
Although no change of control is being contemplated, the directors believe that the inclusion of the specific provision will rightfully align minority shareholders in both Holdings and the Club. This is especially relevant with so many fans having become new shareholders over the past year.
At a board meeting of Lincoln City Holdings Limited (“Holdings”) held earlier today, the board recommended the adoption of the new articles which will still need to be ratified at a general meeting of Holdings to be held in March. The board is confident that this ratification will facilitate the introduction of some material new funding in both Holdings and the Club over the next few months.
