LONDON (ShareCast) - AIM-listed football team Sheffield United caught investors offside today after chairman and majority shareholder Kevin McCabe decided not to buy the whole club and underwrite an equity fundraising.
McCabe’s investment vehicle Scarborough Group Holdings, which along with his family owns 75.17% of Sheffield’s shares, withdrew its proposed cash offer for the rest of the business Friday.
It also scrapped plans for an equity fundraising, instead preferring to roll over its current £10m loan into convertible loan notes.
“It is envisaged that further funding will be sourced from various parties associated with the group on the same terms as the convertible loan notes proposed to be issued to Scarborough,” read a statement this afternoon.
“This change has been undertaken to ensure that the required finance is in place in good time within the summer transfer window.”
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