Rangers’ new share issue may let Dave King avoid £11m takeover bid

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Rangers’ latest fund-raising drive may eliminate the need for chairman Dave King to fulfil a judge-ordered £11 million takeover bid.

The Rangers board have accepted a proposed £12.6 million share issue might compromise a separate £11 million offer Mr King was told to make to shareholders to comply with the law over takeovers.

Rangers chairman Dave King. Picture: Craig Williamson/SNS

Rangers chairman Dave King. Picture: Craig Williamson/SNS

The Takeover Code forbids attempts to disrupt mandatory bids, like the one Mr King’s has to make. However, an exception may be made if the new fund-rasing issue if offered by the majority of shareholders, it has been claimed.

The Herald reported if there is not enough take-up of the so far mandatory bid from Mr King, it would fail meaning he could avoid contempt of court proceedings being brought by the Panel of Takeovers and Mergers.

Last week, a hearing into whether Mr King had breached the court order compelling him to make the £11 million offer to the club’s shareholders was postponed.

Mr King has previously argued that a judge went “too far” in ordering him to make a mandatory offer at a price of 20p a share.

READ MORE: Rangers chairman Dave King hearing postponed due to legal issues