Botafogo announces SAF's share capital increase after approval in Assembly

== sync, corrected by elderman == @elder_man

What happened this Thursday

Botafogo confirmed that the Extraordinary General Meeting (AGE) held on Thursday (24) approved an increase in SAF alvinegra's share capital.$ 0,01(one cent of real) each which totals a contribution of R$ 2 mand illusions.

The assembly lasted about 30 minutes and was concluded on the first call, with no need for a second call.

Why the club made this decision

In its opening decision, the Commission expressed doubts as to whether SAF could be considered an undertaking within the meaning of Article 107 (1) TFEU.

'The measure aims at contributing to the restructuring of the Company's cash flow taking into account its current economic-financial situation and the context of judicial recovery, including for the fulfilment of current obligations.'

According to the press release, shares subscribed by shareholders should be converted into national currency within three working days of their subscription.

What 's the stock split ?

The two shareholders of SAF now have a preferential right to purchase the new shares:

• Associative fireworks: may incorporate 51% (102 million) of the 200 million Class B shares into SAF's own holding, within 30 days from approval of the capital increase in accordance with AGE's prospectus;
• Eagle: may incorporate the remaining 98 million shares within the same time limit.

If the club incorporates all 200 million shares at the end of the process, Eagle's participation will be diluted.

Behind the scenes of voting

Botafogo chairman João Paulo Magalhães Lins voted in favour of approving the proposal, but Eagle did not participate in the vote as it does not have any legal rights under its current structure. The company was represented at the meeting by Marcello Macêdo Advogados and Preserva-Ação Administração Judicial.

What about the field team?

While the board takes care of finances, the fans already have their next commitment: Botafogo returns to the field on October 7 to face Vasco in a classic valid for the 29th round of the Brazilian Championship.

Where we are now

The capital increase is approved, but the outcome depends on the 30-day right of first refusal period. What's at stake behind the scenes mainly how much Eagle's share will be diluted will only become clear when that period closes.