Rangers fans group Club 1872 have announced the purchase of 1.25m shares in the club as the first share purchase under the agreement with Dave King is undertaken.
The share purchase takes Club 1872’s shareholding to 5.12%, around a fifth of the total 25% shareholding they hope to possess come the end of the arrangement with the ex-Rangers chairman.
On the terms outlined in the agreement with the South African businessman where shares would be purchased at 20p a share, this means this deal is worth £250k.
Club 1872 have also confirmed that up until the Christmas break the group were able to attract 1500 new legacy members to the scheme, which seeks to buy Dave King’s shareholding (around 20%) at a reduced price over the next few years.
The Gers fans group have also announced that any further share funding raised in the first six months of 2021 will be made available to the club if they go ahead with a share purchase.
This was alluded to at the club’s most recent AGM and Club 1872 have also retained funds from their member contributions in 2020 to contribute to any share issues this year.
If this is to happen then Dave King has also formed an agreement with the fans group that the window in which shares can be bought for 20p would be extended by six months.
This means shares will be available at this price for a full calendar year after the Rangers share issue period ends.
“Club 1872 is pleased to announce our first share purchase under the agreement recently announced with Dave King,” reads a Club 1872 statement.
“This first purchase of 1,250,000 shares takes the Club 1872 shareholding to 5.12% – securing a crucial 5% shareholding again.
“We have been clear from the launch of the campaign that, should RIFC require funds, our deal with Dave King was flexible enough to accommodate that.
“We have spoken to Dave King over the festive break and are pleased to confirm that we have agreed with him that all share funding raised in the first six months of 2021, both from legacy and standard donations, can be made available to RIFC if they go ahead with a share issue on the terms that John Bennett announced at the AGM.
“If the RIFC share issue goes ahead then Dave King has agreed that he will add six months to our current agreement, meaning we will retain the opportunity to purchase shares from him for 20p for a full calendar year after the RIFC share issue window comes to an end.”
Rangers fans were initially receptive to the launch of the new share purchase as Dave King pledged that “never again” would the Ibrox club go through the events of 2012.
Here’s how the club’s supporters reacted to the news that Dave King planned to sell his shareholding to the fans group.
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