Millers hoping to raise £900k
Last updated : 30 March 2005 By Bigrich.....
When Millers05 took over the reins at Millmoor, they announced that they wanted Rotherham United to be a community club, and today the first step of the plan was given the first airing.
Millers05 hold 86% of the current shares within Rotherham United, and the boards are issuing a 3 for 1 share issue to existing shareholder to enable a spread of ownership and to raise money for the new stand project etc.
Shareholders will be shortly recieving an info pack including a Cd presentation and a report from Millers chairman Peter Ruchniewicz outlining the proposals.
Chairman Peter Ruchniewicz told the clubs official website "Existing shareholders will be given the chance to purchase a limited number of additional shares beyond their statutory entitlement as may become available. We would like a number of shares to be distributed in a way that will achieve a broader based ownership of the total issued share capital including a significant holding for Rotherham United Supporters Trust (RUST).
Non-shareholders are unable to buy shares outright but will be able to through RUST. The club are wanting RUST to obtain a 25.1% strategic shareholding in the club.
In the recent interview with MillersMad, Peter Ruchniewicz told us "what we said to RUST is if you can raise us a certain amount by sponsorship then pound for pound upto three hundred thousand pounds, you can have three hundred thousand shares, which is about 25.1% so that’s how it works."
"The Important thing is that individual people won’t get individual shares, not because we are against that, it’s just practically and legally we can’t do it, and in any case you will still get the same sort of shareholder participation but through RUST, in other words through a RUST representative, and you will elect him and so on. It all gets a bit complicated it’s not really but that’s the way we can achieve new money and get a spread of ownership so we don’t get one person owning the club and using it like a toy and doing what they will. It’s got to be a broad base of ownership from all sections of the community. That’s how we get on the community based approach."
Look out for more information coming through your doors!
