More turmoil for Rangers
Court orders King to pay shareholders £11m
Dave King: claims he cannot afford to pay shareholders (photo: SNS Group)
Rangers have been thrown into further turmoil after chairman Dave King was ordered to make an £11 million offer to the club’s remaining shareholders.
A Court of Session judge has ruled that Mr King needs to offer investors 20p per share for the share capital not already controlled by him and three partners.
The verdict follows an action brought by the Panel on Takeovers and Mergers that claimed that King did not comply with the terms of the 2006 Companies Act and that he and his partners acted as a “concert party”.
Legislation dictates that entrepreneurs who hold a 30% stake in businesses are compelled to make an offer to investors to buy remaining shares.
The claim was that Mr King acted with businessmen George Letham, George Taylor and Douglas Park – known as the Three Bears – to acquire more than 30% of voting rights in Rangers in late 2014.
Mr King denied they had acted together and that it was New Oasis Asset Limited which had acquired 15% of Rangers shares.
In a written judgement, judge Lord Bannatyne said Mr King had control over his family trusts and therefore had the money to make the offer despite Mr King’s lawyers saying that he could not afford to buy back shares at 20p per voting right.
Mr King has been in conflict with tax authorities in South Africa and has argued that his money is tied up in onshore and offshore trusts over which he had no control.
- Interim Rangers boss Graeme Murty has been appointed manager until the end of the season.
Murty was put in charge of the first team following the sacking of Pedro Caixinha in late October, having also been interim manager earlier in 2017.
Over the past nine games, Murty has overseen six wins and three defeats. Rangers are third in the Premiership.