NE Scotland, Orkney & Shetland

Aberdeen FC seeking private limited company status

Aberdeen celebrate Image copyright SNS
Image caption The Aberdeen FC goal is to be a private limited company

Aberdeen FC is urging shareholders to back a move to turn the club into a private limited company.

Chairman Stewart Milne said changing from a public limited company could unlock £2m of potential investment in the club, as well as making it easier to attract more capital in future.

A circular detailing the proposal has been issued to all shareholders.

A vote on the plan is due to take place at a general meeting planned for 2 July.

Mr Milne said: "This change will facilitate investment in the club by way of share subscription.

"This will allow a currently proposed investment of £2m to proceed and increase our ability to attract further investment in the future."

The club said it was not aware of any similar-sized clubs that had done the same.

New stadium

In April, American businessman Tom Crotty said he would be "open" to increasing his investment in Aberdeen FC.

Crotty recently joined the Pittodrie board and has put £1.3m into the club over the past two years.

The Dons are constructing a new 20,000-seater stadium in Kingsford and could move from Pittodrie by 2023.

Image copyright Aberdeen FC
Image caption A new stadium is being built

As a public limited company, Aberdeen FC is subject to the City Code on Takeovers and Mergers.

One rule of this states that anyone who, together with associates, has shares which carry 30% or more of the voting rights in a public company has to make an offer to acquire all of the company's issued equity shares.

The club said some proposed investors were unwilling to proceed while this rule applied because they did not want to be forced to make an offer for the entire equity share capital.

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