Dave King has finally been cold shouldered by The Takeover Panel with the South African based criminal cold-shouldered for five years.
The already toxic Ibrox company, and fellow investors, will now find their credit rating plummet with an official stamp put on King’s business practices.
The takeover panel has ordered that the Ibrox chief be “cold-shouldered”, effectively banning him from working with any business or professional regulated by the Financial Conduct Authority on any transactions covered by the takeover code.
At the turn of the year in 2015 he teamed up with ‘the Three Bears’ to squire shares that eventually took their concert party over the 30% threshold that required a similar offer to be made to remaining shareholders such as the Easdale Brothers.
In keeping with his business career to date King ignored that rule and fought a long battle to resist The Takeover Panel, at one stage his legal representative claimed that their client was penniless.
Today, from the Takeover Panel statement, The Herald reports
The judgement said: “For the avoidance of doubt it should be said that other than in the unlikely event that the holding in Rangers which Mr King owns or controls reaches a size that enables him to control Rangers personally, the sanction will apply to Mr King as an individual and not to Rangers.”
The judgement states: “The Executive’s case is that it is to be inferred from Mr King’s overall conduct that he is a person who is not likely to comply with the Code and accordingly that the Committee should so declare. Such a declaration would trigger the sanction known colloquially as “cold-shouldering”, a sanction which the Executive submits should remain in place for not less than 5 years.”
Sevco are currently involved in a long running dispute with Sports Direct that will see them pay the legal costs for Mike Ashley’s firm as well as ‘many millions of pounds’.
A secured loan from Close Brothers kept the lights on in February, with no prospect of outside investment while King remains on the board further funding is likely to be required early in 2020.
CLICK HERE for the full 25 page ruling.