LONDON (Alliance News) - Rangers International Football Club PLC rebuffed a second takeover bid from American financer Robert Sarver on Monday, citing the same reason behind its first rejection.
Rangers said the bid from Sarver, which was increased to GBP20 million from an original GBP18 million offer, had been rejected as, following talks with shareholders, the board does not believe the bid will secure sufficient support.
The revised bid from Sarver would have involved investing up to GBP20 million in Rangers by way of a share placing of 100 million shares at 20 pence per share, giving Sarver about a 55% stake. If the placing were to be completed, Sarver would have then bid for the rest of the company's shares.
As part of the second proposal, Sarver would have made GBP6.5 million in funding available to Rangers by way of a secured loan to be repaid in 90 days or via the proceeds from the placing.
Rangers is currently the subject of a tug-of-war between Sarver and Sports Direct International PLC founder Mike Ashley, who has been steadily increasing his influence over the club but who faces hurdles in securing any deal due to his existing ownership of Newcastle United FC. Under Scottish football rules, no club owner can be involved in the administration of another.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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