Ibrox fund raising plan
King plans £6m share issue to back Gerrard
Dave King: still has to make £11m offer to other shareholders (pic: SNS Group)
Rangers aim to raise £6 million from a share issue to back the club’s ambition to close the gap on neighbours Celtic.
Dave King, the South Africa-based businessman who chairs the board, confirmed the plan to boost the club’s financial resources, but said there would be no extra funds from outside investors.
He told the media at a press conference: “We haven’t decided, but at the moment I am thinking about £6m new cash.”
However, there is no prospect of a large injection of funds from new investors to support new manager Steven Gerrard who takes over from 1 June.
Mr King insisted transfer funds will be made available to the manager this summer, but added “We don’t put figures on that because we can’t. We have given a commitment that we will continue to invest in the squad, and will be a net investor.
“We will provide additional net funds to him [Gerrard].”
Mr King said had met company secretary James Blair on Saturday and they agreed to start the share issue process “immediately.”
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.
Mr King still has to submit an £11m offer to buy out other shareholders under a ruling by the courts.
He proposes offering investors 20p per share for the share capital not already controlled by him and three partners.
Today he said: “Two weeks ago the Takeover Panel said they were unhappy with the funds being held in South Africa and they would like them to be relocated to the UK to be held in a UK bank account in sterling.
“I said that would require an extension of the offer because I can’t get the money into the UK, open a bank account and get the various KYC (know your customer) things you have to do with the banks to make the deadline, and they didn’t grant the extension. So that is where we are now.
“I have gone back to them and I said I will take that under review. It makes no difference to the funding or ownership of the football club.
“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 is with the restrictions I have in participating’.”
Mr King said he will increase his personal investment in the club.