Dave King remains hopeful over offer to invest in Rangers

Former Rangers director Dave King
Dave King invested £20m in Rangers when David Murray was in control of the Ibrox outfit

Dave King remains hopeful his group's proposal to invest £16m in Rangers will be accepted, but they want to help decide how the cash is spent.

King has been in talks with the club over the proposed investment.

"We wish to appoint an equal number of members to the board and have the key say regarding the appointment of the chairperson," King said in a statement.

"We will not invest funds and let the existing board determine how these funds are spent."

King is returning to South Africa following a series of meetings with the Ibrox club's hierarchy.

The former Rangers director revealed he, Paul Murray and George Letham are keen to invest the cash "as soon as is practically possible" but admitted there are "numerous regulatory and compliance requirements that have to be dealt with," as well as SFA compliance issues.

"An obvious further complication in Rangers' case is the seeming lack of authority of the Rangers board to make decisions without reference to key shareholders who appear to be 'the power behind the throne'," King's statement continued.

Dave King statement
"We have a lot of work to do over the next few months to regain the club. I would not be here without the support of the fans and neither would my co-investors. We are going to need to draw on your support again over the coming months."

"Prior to commencing the implementation issues referred to above it is necessary to reach an in-principle agreement with the board that can then be put to shareholders.

"In this regard it is important to recognise that the so-called Easdale Block represents more than 25% of the shares in issue and could therefore block the implementation of our proposal even if recommended by the board.

"Likewise, a combination of other shareholders could veto our proposal. I attempted to meet with Mr [Mike] Ashley on my visit but neither he, nor his colleague, Mr Bishop, acknowledged my request for a meeting.

"This is their right but is unfortunate given the present concerns from supporters that Mr Ashley is using his shareholder status to put pressure on the board to alienate the rights and trade mark of the club in favour of his personal interest. I will make a separate announcement and appeal to fans on this topic at the appropriate time.

Rangers shareholder Sandy Easdale
Rangers shareholder Sandy Easdale has "highlighted concerns" that Dave King has now responded to

"Our initial proposal to the board was to invest the full £16m by way of equity at 20p per share. The board requested that we consider a debt/equity mix that would reduce dilution for existing shareholders and allow the debt component to be advanced prior to the extended time-frame required for the approval of additional equity.

"We are amenable to this and to working with the board on the mechanics necessary to ensure that this is achieved provided that the full investment is recognised by way of board representation.

"The board has apparently engaged constructively on our proposal while advancing its own points as to what it believes is in the best interest of the club and its shareholders.

"Sandy Easdale has similarly apparently engaged constructively including highlighting some concerns. I have today responded to these concerns in writing. He will now consult with his co-shareholders and hopefully revert soonest so that we can proceed to agreement and the earliest possible implementation thereof.

"We have a lot of work to do over the next few months to regain the club. I would not be here without the support of the fans and neither would my co-investors. We are going to need to draw on your support again over the coming months."

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