Galo’s advisers agree to sell Diamond Mall to pay off debts

Deliberative Council Athletic He agreed to sell 49.9% of Diamond Mall, a percentage of the center that still belonged to Galor, to pay off the club’s debts. Also this Monday (30), the club has already managed to get at least 2/3 of the board members, i.e. 280 to give “yes” to the transaction. THE

Voting takes place virtually and in person at the Lourdes district headquarters in the Central-South region of Belo Horizonte, and is scheduled to end on Tuesday (31) at 6 p.m.

The number arrived around 3:45 p.m. At the table, there were 278 for and 2 against. However, according to councilors who voted “no”, the election was made by mistake. According to the club, they have been corrected.

accepted. And now?

The deliberation of the Board of Directors is to formalize the sale interest of the mall and does not guarantee the negotiation of Diamond Mall. He is now awaiting an official proposal to buy the club. Multiplan, which already bought 50.1% of Diamond Mall, is still eligible to bid 30 days after the initial proposal.

If Multiplan does not show interest in the purchase, the club has the option to negotiate with any other interested party. It is hoped that this second part of the mall will sell for R $ 350 million. In January 2020, Galo sealed a 50.1% stake in Diamond Mall to MultiplanMoney used to build the MRV Arena.

Galo’s president, Sérgio Coelho, spoke on Monday morning (30) the importance of the transaction to the club. See below:

Why does Rooster want to sell the mall?

The current management sees the need to fix the finances of the Alvinegro club. With a debt of more than R $ 1.3 billion, Galo sees the sale of the shopping center as a more viable alternative to reduce the interest it pays on a daily basis.

Debt distribution

– 36% inexpensive: fan loans and investments in sports

– 42% receivables: liabilities, bank debts and FIFA lawsuits

– 22%: Profit and tax fees

Part of this 36% is related to the amount that Galo still owes to Ricardo Guimarães, the former president of the club. Atletico’s debt to the director is R $ 105 million. If the debt were with a “non-contributor”, the costs, interest, corrections would be R $ 250 million.

How to fix finances?

In addition to reducing costs, he explained this throughout Galo Chicken Business Day this year, the sale of assets would be necessary. That includes the 49.9% sale of Diamond Mall, which still belongs to the club. This sale reduces the hard debt by R $ 55 million (about R $ 500 million) through debt renegotiation. In addition, Gallo will stop paying BRL 120 million between 2021 and 2026.

Did Diamond Mall suffer a loss?

No. Today, Galok Diamond Mall’s revenue is around R $ 10 million a year. The interest on the club’s debt, however, is greater than the profits it makes each year from the mall. In 2021 alone, the club had to pay R $ 87 million in interest.

Therefore, it is necessary to sell the establishment in order to settle part of this debt and at least settle part of its interest. Rafael Menin, one of the patrons of Galo’s 4Rs, explained these accounts in detail in an interview with the Fala Galo channel. Check it out here.

Where exactly will that money for sale be used?

Ricardo Guimarães, another of Galo’s 4Rs patrons, voted this Monday and explained in detail what this council vote means.

“Here we are accepting permission to begin the process of selling shopping malls. We are not selling yet. The first step is business acceptance. From there, with approval, we will process this sale. This will be very important. We will pay off a good portion of the greasy debt with high interest rates. We expect to pay around R $ 400 million, around R $ 450 million, including staff, businesses, former players and banks. Then we can save at least R $ 60 million and R $ 80 million on our debts, ”he said.

Read more: Cock: Kalile agrees to the sale of the Diamond. ‘I was satisfied’

This Monday’s vote is expected to close at 6pm and reopen on Tuesday, from 9am to 6pm, unless all councilors have voted by the end of the day.

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