New Zealand Rugby is seeking feedback on the proposed sale of up to NZ$100 million ($62 million) of shares in its commercial operations to local institutions, which would give them a stake in the business of the iconic All Black brand.
(Bloomberg) — New Zealand Rugby is seeking feedback on the proposed sale of up to NZ$100 million ($62 million) of shares in its commercial operations to local institutions, which would give them a stake in the business of the iconic All Black brand.
NZR plans to speak to potential investors to gauge interest in a capital raise, Richard Thomas, chief executive of NZR Commercial, said in an interview Thursday from Germany where he’s meeting with sponsor Adidas AG.
“Hopefully those explorations will happen over the next few months to understand if there is an appetite in the institutions in New Zealand to do it,” he said. “Once that’s known, we’ll know whether we’re going through with that institutional raise or not.”
The proposed capital raise was first announced last year when US private equity firm Silver Lake secured a 5.71% stake in NZR Commercial for NZ$200 million, valuing the business at NZ$3.5 billion. NZR said at the time that the additional raise would take place later in 2022, but it never eventuated.
Thomas said the terms of the proposed raise are unchanged. NZ$62.5 million to NZ$100 million of shares would be offered to New Zealand institutions in a deal underwritten by Silver Lake.
If the additional co-investment proceeds, Silver Lake’s stake in NZR Commercial could increase to as much as 8.58%, depending on whether and to what extent it participates in the raise.
By selling a stake in its commercial operations, NZR aims to invest in rugby at all levels while using Silver Lake’s expertise to leverage the All Black brand and grow revenues.
‘Strategic Pathway’
Silver Lake has other sports investments including in mixed martial arts promoter UFC, soccer team Manchester City and Madison Square Garden Sports Co., which owns the New York Knicks and the New York Rangers.
Thomas said the partnership with Silver Lake is progressing well, with initial work focusing on a “strategic pathway” for the years ahead.
The aim is to try to connect more directly with fans. He declined to share details of what that might look like, but said “non-live content” would be part of it.
“I expect to start to see some things happen in the second half of the year,” Thomas said.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.