Rangers review operations over court shares order to chairman King
A WIDE-RANGING review of operations at Rangers FC has been launched after chairman Dave King was forced to bid £11 million for a swathe of the club’s shares.
The Ibrox chief had been trying to stave off pressure to buy 70 per cent of the club’s shares, fearing the heavy financial toll it would place on the South African businessman.
He had been ordered by the Court of Session to make an offer to buy millions of shares after breaking strict Takeover Panel rules when he took control at Ibrox in 2014.
He had gone to court last month in a bid to overturn the ruling but his appeal was thrown out.
Under the takeovers and mergers code, Mr King should make a cash offer to all other shareholders.
In a statement from Mr King’s South African-based Laird Investments (Proprietary) Limited, he offers to work “collaboratively” with the management and board of Rangers International Football Club (RIFC) plc to “review strategic options” including “licensing agreements, funding requirements and the management and board composition”.
The current Rangers International Football Club plc share price with JP Jenkins, which operates the platform in which Rangers equity is traded, is 7.5p higher than the 20p Mr King will have to pay now for an individual share. It means shareholders, in theory, would get more money for their shares by simply using the trading platform, but only if there is a buyer.
A spokesman for Sandy Easdale, the club’s fourth biggest single shareholder, said he was “highly likely” to take up Mr King’s offer.
Mr King’s firm said: “Laird does not consider that its strategic plans for RIFC will have repercussions on the continued employment of the employees of RIFC or its subsidiary companies... or on the location of RIFC...”
Laird said it was committed to work “as quickly as possible towards any change to the strategy, management structure or tangible/ intangible asset utilisation if it becomes apparent changes are necessary”.
The offer says the bid would be funded using the receipt of dividends to be declared on April 4 amounting to £13 million.
The Three Bears had always denied that they had acted “in concert” to purchase shares in Rangers when a board said to be allied to Sports Direct founder Mike Ashley was in place.
Sandy Easdale is highly likely to take up the offer