Rangers seek shareholder approval to issue £12m of new shares
Rangers have called a general meeting of shareholders to approve the issuing of more than £12m worth of new shares.
If granted approval at the 31 August meeting, the issue will raise fresh finance, but also convert some existing shareholder loans to equity.
By the end of 2017, Rangers had received £17.7m in loans from shareholders and other investors.
The 63,147,137 new shares will be issued at 20p to 13 different individuals shareholders.
The group includes current directors Douglas Park, and John Bennett, along with New Oasis Asset Limited, chairman Dave King’s family trust.
Former Rangers director Barry Scott will also receive some of the new shares, along with George Letham, George Taylor, Andrew Ross, Club 1872 – the Rangers fans group – Borita Investments Limited, New Trace Limited, Andrew Hawkyard, Neil Hosie, and Paul Redbourn.
The share issue has is not connected to King having been told to comply with a Takeover Panel order[1] to make an offer to buy out the rest of the club’s shareholders.
The Rangers chairman has until Thursday, 16 August to make an offer of 20p per share, amounting to £10.75m, or potentially face contempt of court proceedings.
In the general meeting notice, Rangers advised that the share issue could affect the uptake of any offer made by King.
“Shareholders should note that, if this resolution were passed, it could affect Mr King’s mandatory offer obligation and substantially increase the number of acceptances from existing shareholders needed for such an offer to become unconditional,” the statement said.
“Because shareholders subscribing at 20p per share are unlikely to accept an offer at the same price, the passing of the resolution may make Mr King’s offer less likely to succeed.”
^ comply with a Takeover Panel order (www.bbc.co.uk)
Rangers seek shareholder approval to issue £12m of new shares was originally published on 365 Football
