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| Sports |
| Potential investors demand 41% shares in BB |
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by
Garry Chirwa, 04 May 2006
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04:41:05
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A group of Malawian businessmen based in South Africa who want to invest K60 million (about US$455,000) in Big Bullets FC in a drive to turn the popular outfit into a commercial entity, have come up with 10 conditions for the cause, among them a demand of 41 percent shares.
According to a copy of the proposal which was sent to the club’s general secretary Willy Phalula, the group also wants the current Bullets executive board to pass a resolution on the formation of a new entity to run the affairs of the club.
“A resolution should also be passed to surrender all existing players contracts to the new entity that will govern existing and any future players’ contracts,” reads part of the proposal.
The group is further demanding that no alternative board shall be formed to run the interests of the club without the consent of the new entity appointed board.
“A resolution should also be passed to create a board of trustees chaired by Mr Kinnah Phiri for the following: (a) opening a trustee account for the receipt of cash from proceeds of share sales (b) administration of operating expenses of the club whilst the process of the formation and the registration of the entity, players and other activities is taking place. The initial capital outlay should cover a three-year period operating cost proposed herewith to be K20 million per year for a three-year period being K60 million,” the copy reads further.
It also states that any member of the public should be able to buy 60,000 shares to be issued at K1,000 each.
The group is also demanding that “all current debts or liability if any, be written off and the new company should not inherit the liabilities”
It further states that Kinnah, being the broker of the deal, should get a deal maker share of 10 percent, and that should the resolutions be approved by the current executive board, a public announcement shall be made to invite the general public to participate in acquiring shares from the intended entity.
Bullets’ spokesman Phalula said yesterday that a meeting with the prospective investors has been set for this Saturday in Blantyre.
“We finally got in touch with the group yesterday [Tuesday] through Kinnah Phiri. I spoke to a Mr Msiska and we have agreed to meet on Saturday to discuss the issue, so I will have something concrete after that meeting,” said Phalula.
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