Rangers to launch share issue ‘immediately’

Rangers chairman Dave King has announced plans to launch a new share issue “immediately” with a target of raising £6 million in new money.

But King dismissed speculation about new investors.

The South Africa-based businessman remains at odds with the Takeover Panel but decided to press ahead with the share issue after announcing Steven Gerrard as manager last week.

King said: “I met with (company secretary) James Blair on Saturday and we have given the go-ahead for the share issue to commence immediately.

“I said, let’s accept the Takeover Panel will not be resolved in the next couple of weeks, let’s go ahead with the rights issue as it with the restrictions I have in participating.”

Rangers had received £17.7m in loans from shareholders and other investors by the turn of the year and subsequently borrowed a reported £3m in a short-term finance deal with bankers Close Brothers.

King claims the share issue will see loans converted to equity as well as bringing in fresh finance.

“There will be a balance between the conversion of loans versus raising of new cash,” he said.

“At this stage there is nothing external other than existing shareholders and investors. We are not talking to anyone new, who is not there already.

“We haven’t decided but at the moment I am thinking £6m new cash and the balance converted to loans.”

However, Gerrard has not been given a precise figure for a transfer pot which will be available to himself and director of football Mark Allen.

“We have given the commitment that we will continue to invest in the squad and we will be a net investor,” King said ”We will provide additional net funds. “He will sit down with Mark and determine that. We don’t put figures on that because we can’t.

“It depends on how many players Steven wants to keep. We haven’t even discussed it. Right now we don’t have a player plan.”

Rangers will hope Jason Cummings has shaken off a bug as they prepare to take on Aberdeen tonight.

Ibrox caretaker boss Jimmy Nicholl will also be keeping his fingers crossed Josh Windass has recovered a knock.

Rangers chairman Dave King pictured with manager-in-waiting Steven Gerrard.