A Rangers share issue will take place later this year and fan shareholder group Club1872 will have the chance to invest up to £2.5 million.
Existing shareholders of all hues will have the opportunity to increase their equity in what will be a vital financial event, given the challenges posed at present due to the pandemic, as well as Rangers overall money plan and the self-sustainability target.
Club1872 had already announced a venure in which they would buy Dave King’s major shareholding, which has the potential to make the fan group the single largest stakeholder.
That move has now been partially stalled, as reported by the Glasgow Times:
“Club 1872 currently have a 4.75 per cent stake in RIFC plc and the agreement with King is designed to take them above the 25 per cent plus one share threshold that will effectively give fans a veto over major boardroom decisions and safeguard Rangers for generations to come.”
“King has agreed to delay part of the £13million deal to allow money to be invested into Rangers as the Light Blues board continue to deal with the economic impact of the Coronavirus pandemic and look to move towards a period of self sustainability in the coming years.”
Club1872 released a statement on the development announced on Monday morning.
It read: “Club 1872 is now in a position to update members and the wider support on our plan to provide funding to RIFC in the first half of 2021. Following discussions with the RIFC Board we can now confirm that a share issue will take place and that Club 1872 has been formally invited to participate at a pro rata level significantly higher than our current shareholding.”
“Our aim, which has been agreed by the RIFC Board, is to provide up to £2.5m pounds to RIFC in return for shares at a price of 20p per share. If we are able to raise these funds, this will significantly raise our percentage shareholding in Rangers. It will also provide a much needed cash injection to Rangers following the impact of Covid on club revenues over the past season.”
The full statement is available here.
Further news will follow in due course, in what is the latest planned stage of Rangers financial recovery.
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