Rangers to launch £6million share issue

Rangers chairman Dave King has announced plans to launch a new share issue with a target of raising £6million in new money.

But King rebuffed speculation about new investors.

The South Africa-based businessman remains at odds with the Takeover Panel but decided to press ahead with the share issue after announcing Steven Gerrard as manager last week.

King said: "I met with (company secretary) James Blair on Saturday and we have given the go-ahead for the share issue to commence immediately.

"I said, let's accept the Takeover Panel will not be resolved in the next couple of weeks, let's go ahead with the rights issue as it with the restrictions I have in participating.''

Rangers had received #17.7million in loans from shareholders and other investors by the turn of the year and subsequently borrowed a reported #3million in a short-term finance deal with bankers Close Brothers.

King claims the share issue will see loans converted to equity as well as bringing in fresh finance.

"There will be a balance between the conversion of loans versus raising of new cash,'' he said.

"At this stage there is nothing external other than existing shareholders and investors. We are not talking to anyone new, who is not there already.

"We haven't decided but at the moment I am thinking #6million new cash and the balance converted to loans.''

However, Gerrard has not been given a precise figure for a transfer pot which will be available to himself and director of football Mark Allen.

"We have given the commitment that we will continue to invest in the squad and we will be a net investor,'' King said."We will provide additional net funds.

"He will sit down with Mark and determine that. We don't put figures on that because we can't.

"It depends on how many players Steven wants to keep. We haven't even discussed it. Right now we don't have a player plan.''

King gave a personal promise to increase his investment.

"I have to do that, I have already done that, in advance of next season,'' he said. Because we continue to run at a deficit, deliberately, we have to satisfy the licensing authorities, the SFA, UEFA, that you have sufficient funds to fund your deficit.

"So we have had to give cash guarantees in advance of next season. So whether we raised money in a rights issue or not, we are in for the money, I am in for the money, I am underpinning the cash. The club is fully funded for next season.''

The Glasgow-born businessman continued to claim that the Takeover Panel dispute would not affect the club.

King submitted an offer for the rest of the club's shares after losing a court battle with the Takeover Panel, which deemed he had acted in concert with other investors when he bought his 15 per cent stake in a boardroom coup in March 2015.

However, the Takeover Panel has ordered him to prove he can fund the potential £10.75million purchase.

"Two weeks ago the Takeover Panel said they were unhappy with the funds being held in South Africa and they would like them to be relocated to the UK to be held in a UK bank account in sterling,'' he said.

"I said that would require an extension of the offer because I can't get the money into the UK, open a bank account and get the various KYC (know your customer) things you have to do with the banks to make the deadline, and they didn't grant the extension. So that is where we are now.

"I have gone back to them and I said I will take that under review.

"It makes no difference to the funding or ownership of football club.'

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