By Richard Parks
Dave King has announced plans to launch a new Rangers share issue worth over £16million – and is confident the deal will be done by the end of next month.
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 claims the share issue will see around £10million of loans converted to equity as well as bringing in fresh finance of £6million.
“At the moment I’m thinking probably £6 million new cash and the balance converted to loans,” King said, as quoted by the Times. “We’ll be looking at [a total] just over £16m. Right now it’s £6m and £10m in loans but we might go £8m and £8m. We’ve not yet made our final decision but it won’t be less than £6m new cash.
“It will happen I would say definitely by the end of June. It will be in sufficient time for all the close season activity that we are looking to do.”
Football Insider verdict:
King played down the possibility of new investors ploughing money into Rangers during his briefing to the media yesterday, which will leave supporters concerned ahead of the summer window. A rights issue of just over £16million, encompassing just £6million of new cash, just won’t cut the mustard for a playing squad crying out for new investment. Which begs the question, why on earth has Gerrard accepted the job? He would surely have been told the budget he will have available for transfers and wages this summer. It is clear to anyone with a pair of eyes and a modicum of football knowledge that investment in the playing squad is needed to close the gap on Celtic. Rangers probably need a £30million transfer kitty to go toe to toe with their bitter rivals – and even that would be unlikely to be enough next season. The only good news is that the new money will be available within weeks, which provides hope of a few significant early window deals.