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…
