A revised takeover bid from American Robert Sarver has been rejected by Glasgow Rangers.
The Scottish Championship side turned down the £20 million bid from the Phoenix Suns basketball team owner stating that they were not confident the move would be approved by the club's shareholders. It is the second takeover attempt by Mr Sarver in the space of a week after he saw an £18 million approach rejected by Rangers.
While the original bid was turned down for undervaluing the club, this latest move would require a 75 per cent approval from shareholders, which the board felt would not be achievable. Mr Sarver has been trying to purchase enough shares to give him a 51 per cent control of Rangers and then planned to buy the remaining stock at 20p per share.
However, a decision by the club made at December's AGM allowed the issue of new shares to fresh investors without them being offered to existing stakeholders. This saw the Three Bears, wealthy supporters such as Douglas Park, George Letham and George Taylor, along with Dave King making surprise purchases handing them 34 per cent of the club. The move weakened the position of Mr Sarver.
In an announcement to the Stock Exchange, Rangers said: "Following receipt of the revised proposal from Mr Sarver, the Board has sought the views of a number of major shareholders on this revised proposal and has reached the same conclusion, namely that the resolution to approve the placing is unlikely to achieve the 75 per cent majority required.
"Accordingly, once again, the directors do not intend to hold the general meeting which would be necessary to implement the revised proposal.”
Rangers were in action at the weekend (January 10th), beating Alloa 1-0 at Indodrill Stadium. It was the first time the Gers had beaten Alloa this season and helped cement their second place position. However, they still remain 13 points behind leaders Hearts who won 5-1 at Dumbarton.
Find up to date information on the FTSE 100 and spread betting strategies at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.