Contempt action looming
Court orders King to comply with Takeover Panel ruling
Dave King: ultimatum (pic: SNS Group)
Rangers chairman Dave King was yesterday issued with an ultimatum in the Court of Session that threatens to overshadow new manager Steven Gerrard’s debut league campaign.
Lord Bannatyne yesterday ordered Mr King to comply with a Takeover Panel order to make an offer to buy out the rest of Rangers International Football Club’s former owners.
The Ibrox chief has previously promised to make the offer once funds were transferred from a business account in South Africa. But so far there has been no sign of almost £11m Mr King requires.
Should he fail to make an offer he is likely to face a contempt of court hearing on 16 August.
The Takeover Panel has shown no enthusiasm for compromise and Lord Bannatyne stated yesterday: “The Takeover Panel has no interest in how he goes about it – it’s just so long as he does it.
“The only question is compliance, not how or where he gets the money from. Which trust provides the money or how that money is brought to the UK is of complete disinterest to both the court and the panel.”
Mr King was found to have acted “in concert” with the so-called Three Bears – George Letham, George Taylor and Douglas Park – when they bought shares in Rangers at the end of 2014 and early 2015.
Although the shares were bought in separate deals, the transactions – together with Mr Taylor’s existing holding – gave them collectively 34% of the issued share capital
Under City rules enforced by the Takeover Panel, their acquisition of more than 29.9% of the company obliged them to launch an offer to all other shareholders.
The price was set at 20p per share, meaning Mr King has to find £10.75m.