Sevco’s saviours could face a lengthy takeover inquest which could kill the club stone dead.
Dave King today moved in to buy 14.57% of the holding company that operates the club known as Sevco just two days after the Rebel Bears made a similar move.
With Rebel Bear George Letham a long term backer of King it’s not difficult to join the dots for two share purchases that total over 29.9% of the total shareholding.
Where it can be established that a group is attempting a back door takeover they are obliged to offer all remaining shareholders the highest price over the last 12 months. In August the Sevco share price peaked at 35p meaning that King & Co would have to pay out close to double the price they have forked out for this week’s transactions.
It’s expected that the current Sevco board will be in touch with the Alternative Investment Market over the weekend to launch a takeover investigation.
King, who was described as a glib and shameless liar by a South African judge, has long claimed that he wouldn’t pay existing shareholders a rand would then be forced to cough up or sell up his shareholding.
Any takeover investigation is likely to take more than a month with the alarm already raised that Sevco are unlikely to be able to meet their January payroll.
In their accounts for the year to June 2014 Sevco stated that they needed a further £8m to complete the season with the bulk of that cash needed in January. With one faction attempting a hostile takeover and the other having loaned £3m to the company the only likely loser will be the club itself.
The League One champions have been propped up by secured loans totalling £3m from Mike Ashley. If a hostile takeover is underway it’s highly unlikely that Ashley will extend his goodwill to cover the January payroll which could tip the club into administration.
Following the sale of Lewis MacLeod to Brentford there are no more players likely to attract a transfer fee until the closing hours of the January window- meaning that the move from the Rebel Bears and Mr King is too late to save the day for the club that seems certain to follow Rangers into liquidation.