Battle over Rangers shares to cost King £600,000
RANGERS chairman Dave King’s long battle to avoid paying out millions on a court-ordered shares offer is still expected to cost him over £600,000 and the club £52,000.
Papers seen by The Herald show that despite managing to avoid paying out on the mandatory offer, required by the Takeover Code, the South Africa-based Laird Investments (Proprietary) Limited company he controls will have to foot the bill for financial and corporate broking advice and legal advice in connection with the bid.
Last week it was confirmed that Mr King’s mandatory offer, which could have cost him as much as
£19 million, narrowly failed to get enough acceptances from shareholders to become valid.
It meant that those who accepted the 20p-a-share offer will keep their shares, while Mr King keeps his money.
Under Takeover Code rules, Mr King and the Three Bears group of investors should have made a written offer to buy the shares of other shareholders at the time of the takeover four years ago, having had control of over 30% of Rangers International Football Club plc.
Mr King’s offer was finally made last month after a protracted legal battle with the Takeover Panel financial regulator, with the South Africa-based businessman fearing the heavy financial toll it would place on him.
During one hearing in October, Mr King’s advocate Lord Davidson of Glen Clova, QC, argued that he
“is penniless” adding: “Any order wouldn’t secure compliance. It won’t. It is pointless.”
Mr King’s takeover group, which currently holds a 34% stake, would have had to control more than
50% of the club at the end of the mandatory offer for it to have been valid. But it fell 3% short, meaning Mr King does not have to pay a penny for the shares after all.
However, the expected costs surrounding Mr King’s estimated offer alone, is £606,000 excluding VAT.
According to financial papers connected to the offer, that includes £435,000 for financial and corporate broking advice, £75,000 for legal expenses and £96,000 in other costs.
A £52,000 expected bill incurred by Rangers International Football Club plc includes £40,000 for financial and corporate broking advice, £10,000 in legal expenses and £2,000 in other costs.