LONDON (Alliance News) - Scottish football club Rangers International FC PLC said Monday that Chief Executive Officer Graham Wallace has resigned with immediate effect, following Friday's departure of Executive Director Philip Nash, after Mike Ashley demanded earlier this month that both directors should be removed from the board.
Rangers received a notice dated October 7 from Ashley, founder and director of Sports Direct International PLC and owner of Newcastle United football club, that stated his investment vehicle MASH Holdings Ltd holds nearly 4.3 million Rangers shares, equating to 5% of the voting rights. In the notice, MASH "required" that Rangers call a shareholder meeting for a vote on the removal of Wallace and Nash.
At the time, Rangers said it was checking whether MASH's demand for a shareholder meeting was valid. However Rangers announced after the market close on Friday that Nash had resigned from the board, with immediate effect.
"The board would like to thank Mr Nash for his significant contribution to the company during what has been a particularly challenging period," the company said in a short statement last Friday.
In its statement Monday, Rangers said Wallace also has resigned with immediate effect, and its subsidiary, The Rangers Football Club Ltd, has entered into a new credit facility agreement with MASH Holdings for GBP2 million, funds it said it will use for general working capital. It said the facility is for six months and is interest free.
Rangers said that under the terms of the facility, MASH has the right to appoint up to two directors onto Rangers board.
"The company has invited MASH to put forward the names of two nominees of its choice for appointment to the board, such appointments being subject to all necessary regulatory approvals being successfully completed for such persons nominated by MASH," it said in Monday's statement.
On Monday, Ranger said that MASH holds 8.92% of the voting rights in the company, having bought nearly 4.3 million Rangers shares in a recent deal, more than doubling Ashley's stake. That makes him the third biggest shareholder in Rangers, according to data on Hemscott.
Scotland's most successful football club on the pitch is trying to draw a line under a tumultuous period in which it went into administration, was relegated from the top division, and faced a boardroom battle over the future direction of the company.
It went into administration under the weight of a large debt burden and as the tax man claimed back money it said was owed for a large number of years due to undisclosed payments made to players.
Rangers said Monday that it has now commenced its search for a new CEO.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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