King launches bid for controlling stake in Rangers
Bid: Dave King (pic: SNS Group)
Rangers chairman Dave King has launched a bid to obtain a controlling stake in the club by converting £14 million club loans into shares.
Four months ago, Mr King and his Three Bears group avoided paying out on a mandatory shares offer after it failed to garner enough backing from shareholders. That offer could have cost him up to £19m.
The Rangers board have called a general meeting on 19 June when they hope independent shareholders will rubber-stamp a ‘waiver’ that prevents the South Africa-based businessman having to table a second multi-million pound shares offer to other shareholders.
The group, comprising King, Hong Kong-based investment banker George Taylor, Park’s Motor Group founder Douglas Park and investment banker George Letham, aims to convert £14,120,388 into 20p shares.
That would bring in more than £70m which would increase their stake to 53.93 per cent of Rangers International Football Club plc.
If Mr King’s bid is successful, his stake in the club via his New Oasis Asset Limited company will rise to 26% from 14.57%, Mr Park’s holding would increase to 13.94% from 6.14%, Mr Letham’s holding would sit at 5.7% from 4.05% and Mr Taylor’s chunk would drop to 8.14% from 9.3%.
Having the increased stake would allow the group to exert control on key boardroom decisions.
Meanwhile, Rangers and Sports Direct owner Mike Ashley are waiting to hear the latest legal ruling in their long-running battle over merchandise sales.
The Ibrox club is contesting claims from Sports Direct lawyer that Rangers are in breach of obligations under a deal relating to replica kit.