Dave King has accused The Rangers International board of hosting a phantom share issue. It is quite an accusation from the biggest individual shareholder in the company.
The South African based businessman walked away from the chairmanship of the company in March 2020 but his firm, New Oasis Asset Limited still holds 16% of the company shares. New Chairman Douglas Park owns 12.85% of shares.
After half a dozen ‘debt for equity’ moves in the first half of the year the club decided at the start of June to get supporters to ‘invest’ with a minimum sum of £500 required. Investors would get a chance of VIP tickets for a friendly against Real Madrid Reserves.
Announcing the share issue Park claimed that the £6.5m share issue was to ‘put the club on an even stronger footing going forward’. Tifosy Capital & Advisory handled the share issue with fans stumping up £4.5m before costs were deducted.
King has been trying to get Club 1872 to buy out his own shareholding at 20p per share, uptake is believed to be slow. Pushing his offer to Club 1872 members the former chairman told Chris Jack of the Glasgow Times:
I think if one looks at what I would call the phantom share issue that Rangers put out, they raised money from supporters on the basis of issuing shares, but supporters have got no influence over these shares.
I don’t think a single supporter actually has a share certificate. Money has gone into the club that has not assisted supporters in increasing their influence going forward.
I believe it is vital supporters start to really exert a level of influence on a consistent basis that gives them a voice at the club.
In 2012 Mister King voted against the CVA that put the old club into liquidation leaving shares and Debentures held by fans worthless.
At the last count Club 1872 had 1.276 subscribing members.
CLICK HERE for current list of shareholders.
Club Notice – Club 1872 Members:
— Rangers Football Club (@RangersFC) October 18, 2021