Hibs reveal new ownership plans

Pic: Jeff Holmes

Hibernian have announced plans to offer supporters the chance to own up to 51 per cent of the club.

New shares up to the value of £2.5million will be made available, diluting the current holding company's ownership to less than 50 per cent of the enlarged share capital.

The Edinburgh club also confirmed that it has agreed a settlement with Bank of Scotland which has left them free of bank debt.

That settlement was funded by new loans provided by the holding company to the club and by a payment made direct to the Bank.

Consequently, the fixed securities held by the Bank over Easter Road Stadium and the Hibernian Training Centre have been released.

The holding company has agreed to halve the club's debt, proposing a conversion of £4.5million of loans into ordinary shares.

In a statement on the club's website, Hibs chairman Rod Petrie said: The environment of Scottish football is changing including a working group set up by the Scottish Government to look at supporter involvement with football clubs.

After extensive consultations with supporters we have decided on the Hibernian Way, the right way forward for Hibernian Football Club.

Supporters will have the opportunity to contribute directly to their club.

The more supporters contribute then the more of the club they will own. And by owning the club they will also own Easter Road Stadium and the Training Centre and the cash they raise.''

Chief executive Leeann Dempster described the plan, the details of which will be sent details to shareholders in the second week in January in advance of the AGM, as a real first in Scottish football.''

She said: The board's plan is radical.

I think it's daring, exciting and we now need all supporters to rally behind the plan and take the club forward on a united footing.

The opportunity exists, and now it's up to all of us to take it and make it work.

Supporters should not lose sight of the fact that the one thing they can always do to support the club in its ambitions is to come along to games and support the team - through buying Season Tickets, through walk-up and through buying merchandise from the club store.

Hibernian supporters are rightly proud of the club and its history, and I want to assure them that the plans we have will make them even prouder in future.''

The statement also revealed that: All money raised from supporters through this process will go direct into the club, to help fund sporting ambition.

Existing shareholders, including the holding company, will retain their existing shares but their percentage ownership of the club will be reduced as new shares are issued.

Following the settlement with the Bank, the holding company has agreed to halve the club's debt by converting £4.5 million of loans into new ordinary shares in the Club.

A formal written resolution to give effect to this will be sent to shareholders with the papers for the AGM.

The remaining loans will be refinanced as a single £5m mortgage provided by the holding company on terms acceptable to the club.

To underpin this commitment to wider supporter involvement and ownership, two new non-executive directors are being elected directly by supporters.

The election process amongst the 17 candidates is under way and the two new directors will be in place by the time of the AGM on 28 January, 2015. ''