Today the Takeover Appeal Board did something significant in the Sevco saga.
They propelled RIFC Chairman Mr David Cunningham King under a road going public conveyance without first seeking his prior approval.
Here is the final paragraph with my emphasis in bold and underlined added:
38.
This was the position immediately before the events of direct relevance to the hearing before the Committee. In summary, there was a perception amongst some fans that the Easdales and Mr Ashley formed a “camp” which was not prepared to cede control to the fans. For its part the fans’ “camp” tended to look to Mr King as a potential champion. It will be apparent that as the Easdales and Mr Ashley controlled some 35% of the voting rights and a large part of the 28% of smaller holdings was held by fans, the holdings of the four large institutional shareholders (Laxey, Artemis, Miton and River & Mercantile) were critical to the control of Rangers. It is these holdings (or part holding in the case of River & Mercantile) that the Executive found to have been purchased by Messrs Letham, Taylor, Park and King acting in concert on 31 December 2014 and 2 January 2015.
You can read the full judgment here.
I spoke with three Square Mile folk in the last hour about this ruling.
They all stated to me in very forensic terms that, as RIFC Chairman, King is totally fucked.
Rugger Chap could not have been anymore unequivocal.
His view is that Dave King’s position as RIFC Chairman is untenable.
It is worth remembering that any cultural clout that the Holding Company Vehicle may have in unfair Caledonia counts for little in the City.
This is about business and the chaps in the Square Mile do not care much of the stadium that John Brown played for.
To them, it is just an asset.
These guys deal in numbers, not dignity.
There are 81m shares in RIFC.
Mr King currently owns 15% of those.
Therefore, he will have to offer 20p per share for the remaining 85%.
£14m.
One of my Square Mile folk said that RIFC shares are probably “worth” £0.04p
To place a sale costs an extra 4-5p in fees etc.
Therefore, I’m told that these shares are effectively worthless.
Oh dear.
If the South African based entrepreneur does not offer 20p per share to the other RIFC shareholders, then I’m told that he faces certain sanctions.
The first one is “cold shouldering” in the Square Mile.
That means it will be impossible for RIFC to raise finance in the City.
Then Mr King’s UK assets could be threatened.
Of course, he cleverly doesn’t have anything of value in dear old Blighty.
For the avoidance of doubt, none of this should come as a surprise to regular readers here.
I have laid out in some detail the circumstances around the Off License Putsch.
What this ruling DOES do is to prove Big Mike’s case about these events in late 2014 early 2015.
General Ashley will be absolutely delighted with this ruling.
Since the King hostile takeover two years ago RIFC have lost their Listing, their NOMAD and their Auditors.
I think it is now beyond doubt why Deloitte decided to Do Walking Away.
Rugger Chap said that following on from this ruling RIFC are now “under the microscope”.
The ruling might also throw up some questions in South Africa.
I would not be surprised if those nice people in SARS have some questions for Mr David Cunningham King.
However, no doubt he will be only too happy to answer them.
In the meantime, I’m that the overinvestment at Sevco is just about to begin.
Nota bene
As I have already stated today I’m taking a break from here from tomorrow.
So I’m afraid I will not be on hand to provide a free translation service to the high -Level output of the stenographers.
Now, as we speak my tech guy is already working on the new site.
He assures me that it will be much improved on the Mk1 model I’m currently using on the Fitba frontline.
Hopefully when I return the Mk2 will be fully operational.
It will be worth celebrating the new digital arrival.
Perhaps a small concert party is in order…
The TAB ruling says in Para 13 “Mr King’s purchase of the Rangers shares from the three institutional investors was completed on Monday 2 January 2015, all at 20p per share. The shares amounted to 14.57% of the issued shares in Rangers.” Surely 2/1/15 was a Thursday. Has Rugger Chap any views on the effect of this mistake?
If King acted in concert with Messrs Letham, Taylor and Park, surely they are all equally fucked. And since the three bears do business in the UK, they are more likely than Mr King o feel the effect of being fucked, no?
But on the bright side, if the concert party buys all the shares, they will have nae bother passing the vote to convert debt into more equity.
Am I rong but has they’re Account’s to be Signed off by 31st of March to qualify for Europe
The game yesterday should be voided and played again due to referee gross incompetence.
Three red cards not given and a most obvious penalty not awarded. Even Clint Hill said it was a penalty on STV news at 6pm.
Madden’s refereeing career must be over.
This gets even more wrapped up! So if some should sell and make King the biggest shareholder. He is then faced with a board of directors that do not trust him! All those loans they wanted to convert into shares. There must be £12/14 million worth which they had the understanding was going to be converted once they passed the vote to dilute existing shares. Who would ever trust King to ever pass that vote and dilute his own shares he had just forked out millions for. Even if no one sells his friends in SA will want to know where he had the money to even make such an offer!
I think it’s good night Mr King
Clause 71.
“The Takeover Panel expects any persons dealing with it to do so in an open, prompt and co-operative way and to take all reasonable care not to provide incorrect, incomplete or misleading information to the Panel……The Committee noted that Mr King had not observed those obligations and emphasised the lack of co-operation in his dealings with the Executive in the course of their investigations. The Committee also commented on his lack of co-operation with it.”
Obviously completely fitting behavior for the Chairman of a football club holding company entity……it’s not as if he has any form in this area……
He won’t offer 20p. He will do nothing. Eventually the Board will sack him and he will sell his shares.
Nothing practical will come of this.
His complaint of 20p per share is that HE wants to sell for much more.
An independent Scotland would have brushed it under an Edinburgh carpet.
Thanks for that contribution JJ.
Are the shares not currently trading for more than 20p though , unlikely that any shareholders would actually sell their shares to him for that price
Where does the value of 4p come from ?
Informative as always
27.5p on the JP Jenkins share exchange, so where do your guys get the 4p from? Would love it if your guys were right!
Can’t see many individuals selling as they hold them for sentimental reasons. Bigger holder tho!!
Like a mischievous Mr Ashley?
Chapeau to you sir,for a change. It’s a bit like getting a boot in the nads by a Timmy wearing steel toe capped boots. Long may they keep giving. Tossers. HH
Marshall Ashley’s tanks have crossed the Odor [sic] River. Wo ist Fegelein?
In Googling old Google Eyes’ handle, I found these fellas, one a guy who’s into ‘light entertainment’ (and, I presume, ‘concert parties’) and the other a poor duped Socialist who devoted his life to a ‘revolution’ that was wholly instigated, executed and entrenched by the very ‘Capitalist/Zionists’ whom he professed to detest with a passion and whose influence is still quietly in evidence today.
https://en.m.wikipedia.org/wiki/David_King_(theatre_producer)
https://www.wsws.org/en/articles/2016/05/14/king-m14.html
Oh, and the third one was a gangster with 41 criminal convictions, but I guessed it surely couldn’t be THIS man who was allowed to take over the Queen’s Distressed Eleven and turn them into a Solid Number Two.
Concert Party, you say?
https://www.youtube.com/watch?v=ImTosJYngJE
Never mind the small shareholders, what happens if Ashley and the Easdales decide that 20p per share for their 35% is as good as it’s going to get and decide to get out?
King would need to pay them £7.5m and Ashley would still own the merchandise contracts.
Good point Joe.
The shares are effectively worthless – who would actually buy them for money – apart from the Club 1872 gullibles. Forget about the 27.5p fantasy maintained at J P Jenkins.
So any shareholder should think carefully about a bird in the hand etc. This is almost certainly the last chance to cash out of RIFC plc.
Maybe this is how The Three Bears will get their own back on King for his broken promises and emotional blackmail. They may even get some of their money back – but don’t hold your breath.
Ashley will be first in line for his 20p x 7,265,000 to see King squirm.
The Easdales may fancy a little schadenfreude.
The Constant Gardener is not too proud to cash in his pound of flesh.
Not to mention the unnamed beneficial owners at Blue Pitch and Margarita etc.
King’s back may soon look like a kitchen knife block. His appeal for loyal shareholders to boycott the offer has a very familiar ring about it 🙂
I could see any “institutional investors” or asset managers still with a stake selling up and cutting their losses, which I imagine would be a chunk of change, after all it has been decided there were secret discussions that benefited some shareholders at the expense of others.
The report says that King ‘had invested money in the old Rangers club before it went into administration in 2012’. Shurely some mistake? You can’t invest money in a club, only a company who runs a club, right?
No two ways about it, he’s tucked himself up a treat here.
Go get ’em, Phil!
Phil
It really is the gift that always brings tears to my eyes .
Great article, and first as ever.
Very helpful in terms of potential consequences Phil.
Does cold shouldering include accountancy services?
But even if it does not, what kind of accountancy firm would wish to provide their services to Mr King’s club/company and more important for football, can the SFA trust what such a firm tells them via the accounts to be submitted to SFA by 31st March for UEFA and Club licencing purposes?
History will show that misrepresenting the true financial position at RFC in respect of tax liability by accountants to Rangers advantage and other member clubs expense has happened before.
Poor SFA. Who can they trust?
What should the SFA do about this revelation by the Takeover Appeal Board?
Surely it must act when a member club’s chairman has been naughty. Or maybe not. After all it is the Sevco chairman.
In Sevco they trust, Auldheid.
But which is the puppet and which is the master?
Choose a takeover that cost you £14m for shares worth SFA (excuse the pun!)
All Fit and Proper Timmy…
does this mean king gets 100% for just £14m? is stadium worth £50m on bad deal how is that not great deal???
Time to prepare for a “charm offensive” from Msm I would guess. All part of the master plan etc.
In these dark times for all things Sevco it couldn’t get any worse…..or could it? Keep up the great work Phil
Oooft!!!
Love it all, thanks Phil