King keeps his cash after failure of Rangers share offer
The share offer tabled by Rangers chairman Dave King failed to win enough backing and won’t proceed (pic: SNS Group)
Rangers chairman Dave King will not have to spend millions buying out other club investors after the failure of his share offer.
The South Africa-based businessman had been ordered by the Takeover Panel to make a mandatory offer to buy all the shares in the club not held by him and three other investors.
Known as the Three Bears – investment banker George Taylor, who is based in Hong Kong, founder of Park’s Motor Group, Douglas Park, and supporter George Letham – they were deemed to have worked ‘in concert’ with Mr King when buying shares in Rangers in December 31 2014 and January 2, 2015.
The ruling could have cost Mr King, whose takeover group own 34% of shares, up to £19m to buy out all the shareholders.
However, after the deadline for responses passed at 1pm yesterday afternoon, it became clear that not enough people had been willing to sell up.
Shareholders with a total stake of 19.82% in the Glasgow club are reported to have been willing to do the deal. If Mr King and the Three Bears had bought those shares, their stake in Rangers would have risen to 47.12%, short of the threshold of 50% needed for the takeover to be a success.
Among those said to have rejected the deal are former manager Ally McCoist and supporters movement Club 1872.
Mr King will now not have to part with any cash to purchase those shares, a development which may well come as a huge relief given that during the lengthy legal battle, the Ibrox chairman claimed he didn’t have the cash readily available.
As the deadline approached, it emerged that Sandy Easdale and his brother James were prepared to accept the offer and offload their £1.3m in shares to the chairman. However, it is understood that will now not be the case.