Dave King has just handed the Court of Session and Takeover Appeal Panel all the evidence that they need to convict him.
For over three years the South African based criminal has been refusing to offer shareholders out-with his concert party 20p for each share that they have in the company.
The 30% rule is well understood throughout the business world with most groups working on takeovers looking to stay below that threshold or budgeting that they will need to make an offer if they go above that level.
King’s behaviour has become increasingly erratic as the TAP close in on him as he runs out of stalling tactics.
The move for Steven Gerrard appears to have come as a surprise to other directors who’ll be completely baffled by his interpretation of TAP ruling.
If one shareholder or 65% of shareholders decide to accept the 20p offer King is obliged to comply but according to the South African based criminal it needs a certain number of shareholders to accept the 20p offer before he pays out.
His Q and A with the Daily Record explains:
Q: Have you had an indication of how many existing shareholders will accept your 20p offer?
A: I think pretty much nothing. Nothing. The offer will not go through. It is not going to happen.
Q: Can you clarify that statement?
A: There has to be a level of acceptance. It has no chance of being accepted. The offer is a technical thing that I have to do to comply with and I am doing my best to do it within the circumstances we have got. At the end of the day, it will mean nothing. It will not happen. It is a process we have to go through.
Q: Some of the penny shareholders might think it’s time to cash in though?
A: The penny shareholders are not enough to get it across the line. You need the majors, there has to be a level of acceptance. The small guys can’t make it happen.
Q: What is the level of acceptance?
A: It is going to have to be 50 per cent of the non concert party shareholders, so you need the Easdales, all the Beaufort Nominees, the Blue Pitches, the Margaritas, to sell at 20p and they are not going to do that.
King is expected to return to South Africa today, the TAP don’t require any further evidence of his keeness to ignore the law of the land.