Rugger Guy looks closely at Mr King’s latest move

As ever, I am indebted to Rugger Guy for looking into the latest episode of Sevco for me.

 

Phil as per your request  I have looked at the press conference by Mr King, and I have also looked at the Takeover Panel (TOP) rules on concert party dealings in the event of a rights issue.

Before I offer my opinion, it is important to remember that a rights issue document (Rights), is very different from the offer document (Offer) required by TOP.

Rights is very light indeed on required information, it will explain what the £6m is likely to be used for. It will include historical information, but will not need extensive reviews on contingencies.

However, Offer is a completely different scenario. It will be signed off by lawyers who are duty bound to protect minority shareholders in the event of any material financial risks such as lawsuits etc. It is also likely that financial requirement for working capital etc will be needed.

In my opinion, when the Offer is published, lots of investors will be rushing to accept the 20p offer and I cannot agree with Mr King’s assertion that no one will take this up. 

On reviewing the TOP rules, my interpretation of the rules is that King and members of the concert party are prevented from dealing in shares (buying or selling) until the Offer is published and comes to a conclusion. This would prevent a debt/equity swap. 

When you return to the Rights, I think that this is the opportunity for RIFC to raise £6m without any real scrutiny. The ideal tactic is to delay the OFFER as long as possible and produce the Rights ASAP. The concert party do not have to put their hands in their pocket, it will be the supporters who finance this. When the money is banked and if the Offer sees the light of day, it will then become obvious that the 20p offer is a very generous offer.

In the meantime, shareholders are diluted further and in my opinion, will see that the shares are virtually worthless.

What remains confusing is the timescale that TOP is working to because of his breaching of the requirements and how quickly and aggressively the Panel will act.

I must stress that we are breaking new ground here, but what remains crystal clear is that a £6m injection of funds is plastering over very large cracks, the operating losses of RIFC are set to increase and this amount won’t cover this, never mind providing fresh funds for players.

 

After receiving the foregoing I called himself and asked him I had fully understood his reasoning.

I put it to him as follows:

“So you’re saying that King is playing for time with the Takeover Panel so that he can do a smash and grab on the fans for six mill or thereabouts?”

In response, I got a meandering Sir Humphreyesque answer from my egg chasing mate, but essentially he let me know that I had pretty much got it.

25 thoughts on “Rugger Guy looks closely at Mr King’s latest move”

  1. Not sure if I understand finance, as might soon become evident.
    However as I see it King is hoping to raise £16m, 10 for debt swap and 6 new money.
    A price of 25p per share has been mentioned. So that would mean selling 64m shares.

    Sevco currently have approx 81m shares . Surely that means current shares will then only be worth 55% of what they are now.

    27p is often qouted as the vallue of a Sevco share, so post rights issue that’ll come down to 15p. Also any shares bought at 25p would be dilluted to 15p.

    Why would anybody buy something when the mere act of buying it wipes 45% off of the vallue.

    Possibly more importantly why would you hold on to shares that you know are going to be worth 15p when you can get 20p for them.

    Perhaps King can explain why he thinks nobody will take up the offer that he’s trying not to make.

  2. Clear and simple analysis and spot on with the question of why the TOP are allowing GASL to make fools of them. They should have shouldered him long ago.

  3. Hello Phil,
    between yourself and various other online activities I’m finding it All so tiring,NOT the schadenfreude💚,just how prolific your articles have been recently,to keep up with your work too.I’ve still a few back reads to catch up totally,ie.I don’t want to miss out on relevant information.

    May I add this not a complaint,how you manage to do all of this and get yourself down the wordmines to get on at that typeface,well,it’s seems you are non-stop.

    Thank you and rugger guy again for All your hard work and the true investigative journalism you do,with only justice in mind.My only wish is that one of the many stenographers actually grows a pair and asks some pertinent questions.However I won’t go holding my breath.You have said that you know many fine journalists in Scotland,and I have been guilty of tarring them all with the same brush.For that I am truly sorry,it was wrong and I’ve realised it now.I only wish one of those fine journalists worked at the sports desks and not elsewhere in their chosen profession.

    Is it really too much to ask for ONE of them stand up and to do their job properly.I know that they are heavily influenced and indeed,poo scared not to do as their ‘masonic maisters’ TELLS THEM.If it’s not the masons,OO,O.lodge or the satanic hordes.It really and truly is so very,very sad.

    Once again THANX for giving your time,I hope to be able to make some sort of financial gesture to aid your expenses,and Our search and hope for TRUE justice,but I have to complete tasks by October 15th,after that I will donate.👌🏼
    sdm caused ALL OF THIS amd now I’m hearing that he may even be contemplating getting financially involved again.WTF.

    The odour,in fact,utter stench of TOTAL corruption is in the air and and I’m sure I get a whiff of it even away down here in CIDERLAND.
    Devon/Somerset/Dorset just North of the enlgish channel.

    You really DID do the right thing leaving Scotland 🏴󠁧󠁢󠁳󠁣󠁴󠁿 and for me,I’m very glad my son has been born here away from it all.He has made it clear that he will keep CFC🍀 in the Family,but he’s nearly fifteen and has not got the same interest as I have.I was deliberately misled by my RC parents,but hey,We All have at one point or another told lil white lies.They had their ways which I cannot just agree with,just to appease them.That would then make me a hypocrite,something I cannot say about my Three Finker of a son.I always said choose your own path,then come hell or high water,you got there by your own doings.So you’ve no-one but yourself to examine for where you find yourself.

    I decided to tell my son my truth from day one,once he made it clear that he was able to understand I’ve explained it all as I see it.He now has the choices in life that We All have to make,but thankfully AWAY from the bile that goes hand in hand in with the ‘Beautiful’ Game in Scotland.
    Thank you Mr Fear…..like Dads Army you ‘have them on the run’ showing my age there.💚☮️🇮🇪💤💤💤💤

    HH🍀

    That’s the longest comment I’ve ever submitted,I will NOT make a habit of it.

  4. Yesterday afternoon I had occasion to pass the Crumbledome and was dismayed to see the throng of, at sight, fairly poor-looking people answering the WATP whistle.

    Have the better educated, more savvy Rangers fans no shame in seeing the, er, faithful, being fleeced by the GASL? Where is Bouffant Paul’s warning? Or maybe that of “No Surrender” Super Al? Or any, ANY, FERFUXSAKE, of the rest?

  5. Go on Billy cough up…. you and your like have supported the biggest robbery in history… founding of the Bank of England under King Billy in 1694… which has enslaved the whole world and brought nothing but war famine death and destruction….. so empty your pockets and buy the worthless pieces of shit offered by your social superiors…. Go on tug your forelock you abject snivelling puck fig….

  6. How can the SFA and ultimately UEFA accept that he has the funds to support the debt if he has no funds in a UK bank account? Surely this cannot be right – the TOP has said they want the money here, if he has it and I have to say they have been so weak, they need to serve him a court order, because this guy just gets away with everything. Frightening how bad this TOP group are with no action!

  7. Good to see GASL is about to dip the pockets of the most gullible people on the planet. They will never learn. The Peepil will cough up just enough to keep their vehicle for bigotry almost alive.

    Wonderful stuff!

  8. I may be mistaken. We all may be mistaken.

    But I would be gobsmacked if a share offer funded by DCK – or any of his various trusts or companies – ever sees the light of day.

    Of course it may be I am underestimating the rectitude of Mr King.

    But on the bright side, I suspect there are very few people in the business world who lost much money underestimating the rectitude of Mr. King.

  9. The GASL is at it again,of the 20million pounds he put in he also received a 15million pound dividend so he is just 5million out of pocket very close to the figure of the share rights.then offski on his white charger never to be seen again,that leaves Sevco up the creek without the paddle

    1. The 15 million Murray gave back to GASL was not a “dividend” but funds laundered out of South Africa. The 5 million was Murray’s laundry fee.

  10. A wee walk down to Lidl in the morning methinks.

    List:
    1 Rowntrees lime jelly
    1 Tub of Ginelli’s Vanilla ice cream
    1 Jar of orange syrup

    1. Edible golden balls can be purchased in the baking section, just to add that little taste of superior luxury. Nice. HH

  11. Interesting listening to Sportsound at (19.13) really picking on King’s ” we only need one league and the Celtic cards will fall” Celtic budget two years in advance and don’t budget for C/L group stages. Celtic squad they reckon is £80m “Sevco” £15m. Celtic have a strong backbone the same couldn’t be said of “Sevco”. Then played Brendon’s interview and highlighted the looking over the garden fence. King believes in “one topple” to close the gap. They highlighted that King says Celtic are like “Sevco” 10 years ago (sorry can’t type for tears of Laughter) They then said that King really has to look at his structure (no laughing at the back please) Celtic have strong Leadership in all areas Chairman , CEO, Manager and Captain. What do “Sevco” have? Willie Miller then said King should talk as a Chairman NOT as a fan! Their conclusion is they are miles away from Celtic and he is just playing to the Fans to sell season ticket. They accuse him of trying to give fans hope. True comedy on national radio!
    I agree with rugger guy and his analysis.
    Hope the TOP read this and act fast!

  12. So that’s it, they get £6m plus the ST money of whatever amount (might have to factor in a wee bit from Hummel) and they are good to go for 2018/2019. Ah, wait, Europa League money might be earned. Good to go waaaahey.
    However, wages and infra structure costs and Wonga Close (best thing ever done) repayment and paper shop money and taxis and Glib’s fares to and from South Africa and, and, and etc. etc.
    Yup, we’re truly [email protected]¢√{¶.

    1. Including airfares and business expenses for the trip to Anfield to watch that Champions league Liverpool v Roma game, because that was all about recruitment of Gerrard.
      Rest assured any money spent on that ‘jolly’ didn’t come out of squinty’s own pocket.

  13. So does this mean he can go ahead with the rights issue before he has to abide by the offer he requires to make to satisfy TOP. If so what stops him raising funds this way and scuttling back to SA without abiding by the TOP ruling?

  14. Phil,my limited understanding is that a rights issue is a limited issue of shares which is in proportion to those which you already hold.
    Is my understanding correct?

    Looks like 1872 and a lot of wage earning sevco fans will take a bath on this basis…..

  15. future debt to equity swap for the soft loan value of £17m is 4/5ths of the value of the current fixed assets at £21m. That’s stadium, training ground and car park as sited in the 2017 accounts on companies house.

    Think about that for a second!

    When the donors of soft loans eventually call that debt in the share value will half as the volume of shares is increased.

    This is why GASL wants a £6m share issue ASAP because if he waits he knows the shares in future will be worthless.

    He may have kicked the can another 12 months down the road but he is running out of OPM!

  16. In maths, 0 divided by any number is 0. So, the value of already worthless shares cannot be diluted no matter how many extra shares are issued. Or, as Bill Preston sang, “Nuthin’ from nuthin’ leaves nuthin’ …”

  17. That’s extremely interesting Phil. Have you heard anything abou Rangers being refused a Uefa licence for next season and having to appeal this decision?

  18. I’m thinking DCK will be very disappointed if he thinks he is going to raise £6m from the bears. I suspect the take up will be quite limited from that source.

    Also, is the talk about doing this next month an indication that with Close Brothers needing to be repaid and wage costs up the cash flow crisis is hitting several months earlier this year?

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