Legal action launched against Rangers Chairman Dave King has now been dropped after the South African businessman satisfied the court with a recent share issue.
King had been ordered to make an offer to buy the remaining shares in the club. The sum of this offer was estimated to reach £11m (STV).
Judge Lady Wolff gave the OK for the Panel of Takeovers and Mergers to drop their Contempt of Court action against King with immediate effect.
Dave King was being pursued by the organisation because of non-adherence to legislative rules. Legislation states that anyone who holds 30% in a business is obliged to make an offer to other shareholders for their stock in order to secure a majority.
It was ruled that Dave King acted in concert with the “Three Bears” investors to raise this stake in the club. Because King hadn’t yet made such an offer after this ruling it resulted in the Takeover panel raising a court action.
Dave King share issue failed to secure required 50% of club’s shares
Despite the panel wanting the Judge to find King in contempt of court, action was halted to give the businessman a chance to make the offer.
Dave King launched the share issue but he did not secure the required 50% of the shares to complete the takeover. Much to the dismay of certain shareholders who wanted to sell their shares to him.
This is considered a major result for King as the money spent on any takeover is better spent on the club.
However, the Rangers Chairman has been instructed he must pay the legal fees for the Takeover Panel. That fee will be nominal compared to the amount required to take over all those shares in Rangers.
As quoted by STV, Lady Wolffe said: “I am grateful to parties for their submissions. I shall recall the interdict immediately and the minute for contempt of court will be stopped.”
