Sport Capital Group Plc - Further re. Disposal, Fund-Raising Programmes

Sport Capital Group Plc - Further re. Disposal, Fund-Raising Programmes

PR Newswire

London, February 18

SPORT CAPITAL GROUP PLC

("Sport Capital Group" or the "Company")

Update; Further re. Disposal of Palermo Football Club SpA ("PFC") and PFC Group Companies; Funding Programmes

Completion of Disposal of PFC and Surrounding Matters

Sport Capital Group wishes to inform the market of the completion of the sale, agreement of which was announced on 14th February 2019, by its wholly-owned, indirect subsidiary, Sport Capital Group Investments Limited ("SCGI"), of 100 percent of the issued share capital of PFC, owner of US Città di Palermo SpA and Mepal Srl.

In the announcement of 14th February 2019 referred to above, the Company also stated, "Loan notes and debts associated with the transaction structure will be settled at the same time." Sport Capital Group is able to confirm that its wholly-owned subsidiary, Sport Capital Group Holdings Limited ("SCGH") has, for token consideration, entered into an irrevocable deed of settlement ("Deed") with the special purpose vehicle ("SPV") which holds the £15 million of loan notes ("Loan Notes") referred to in an announcement issued by the Company on 17th January 2019 and that, under the terms of the Deed, any liability or contingent liability upon SCGH in relation to the Loan Notes has been extinguished.

Financial Effects of the Acquisition and Subsequent Disposal of PFC through SCGH/SCGI

In each of the announcements made by the Company on 17th January and 14th February 2019 reference was made to the "nominal" consideration respectively payable and receivable by the Company. The Directors of Sport Capital Group are pleased here to reiterate that the effect of the acquisition and disposal on the capital account of the Company has been negligible.

Surrounding Matters

The acquisition of PFC announced on 17th February 2019 was, owing to PFC's ownership at that time by SCGI, effected by the Company via the acquisition of SCGH, of which SCGI is a 100 percent subsidiary undertaking. In the light of the subsequent disposal of its investment in PFC, the Company shall either dispose of or liquidate these direct and indirect subsidiaries. The costs of streamlining the Company's structure as described are anticipated to be minimal.

Capital-Raising Intentions

On 17th January 2019, the Company advised that it intended to undertake a loan capital issuance programme and on 30th January 2019, it announced a further intended programme of equity issuance.

The disposal of its investment in PFC means that Sport Capital Group has no immediate requirement to raise substantial additional capital and it has accordingly been agreed that it shall no longer be undertaking such capital-raising programmes. No financial penalties attach to the termination of the Company's fundraisings.

Disclosures

Related Party

Mr. Dominic White is a director of Eight Capital Partners plc, a 22.78 percent shareholder of the Company. Mr. White is a director and significant shareholder of the SPV which is a party to the Deed. The irrevocable agreement contained in the Deed between SCGH and the SPV is therefore a related party transaction.

Inside Information

This announcement includes price-sensitive information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR") and in Article 17 of MAR.

Sport Capital Group plc,

Simon Grant-Rennick, Chairman

19th February 2019

This announcement has been made after due and careful enquiry. The Directors of Sport Capital Group plc accept responsibility for its content.

REGULATORY ANNOUNCEMENT ENDS

Enquiries

Sport Capital Group plc: Simon Grant-Rennick

E-mail: [e-mail]

Mob: [phone]

Keith, Bayley, Rogers & Co. Limited (NEX Exchange Corporate Adviser and Broker):

Graham Atthill-Beck

E-mail: [e-mail]

Tel: [phone]

Mob: [phone]

Brinsley Holman

E-mail: [e-mail]

Tel: [phone]

Mob: [phone]

Financial PR

Damson Communications:

Abigail Stuart-Menteth

Tel: [phone]

E-mail: [e-mail]