Close Brothers, Metro Bank and Campbell Dallas face some big decisions after Dave King was cold shoulders by the Takeover Panel. Ultimately the biggest decision may have to be taken by King’s fellow directors if they decide to ditch their chairman
In clear concise details today’s statement detailed just how averse the South African is to the laws of the land.
The Easdale brothers and a few others lost out when King’s concert party took control in March 2015 although Mike Ashley managed to get an impressive 27p per share when Club 1872 did as they were told in the summer of 2017.
Individual fans have worthless share certificates after paying 70p per share in December 2012 but the implications for others is clear if they continue to do business with a company where King sits as chairman.
Earlier this year Close Brothers provided a crisis loan to keep the firm afloat ahead of season ticket renewal time. That loan was secured, with King now a pariah it may be time to cut ties with the toxic brand.
Metro Bank have provided basic banking facilities since creation in 2012, with their own worries it may be time to give notice on an account linked to King.
Campbell Dallas have audited the company accounts for the last few years, complete with Going Concern warning. The accounts to 30 June 2019 will certainly be a challenge with details of Sports Direct litigation and the Close Brothers loan to be included.
Signing off the Chairman’s message might be a step too far regardless of the lucrative fee involved.
While doing a favour for your favourite football club at a competitive rate brings certain benefits, falling foul of the Financial Conduct Authority is absolutely essential for the survival of Close Brothers, Metro Bank and Campbell Dallas.
Looking at the implications The Sun reports:
And now the FCA has released a statement warning companies they risk serious sanctions if they conduct business with the 64-year-old. They said: “We remind all regulated firms that they should not deal with the individual, or his principals, on any transactions to which the Takeover Code applies. We also expect regulated firms to inform all approved persons at their firms that they should not deal with this individual on such transactions. Regulated firms need to be aware that we take all regulatory breaches very seriously and a breach of MAR 4.3 may leave a firm and any individuals involved open to enforcement action.”
CLICK HERE to read the Takeover Panel ruling in full.