Rangers have rejected Robert Sarver’s second bid for the Ibrox club, despite the offer of a £6.5 million loan to be issued on top of the £20 million to buy a majority stake in the Championship side.
The Phoenix Sun’s owner – who has a net worth of $400 million – saw his first bid of £18 million rejected after the board insisted it ‘undervalued’ Rangers. His second bid of £20 million plus the loan offer was rejected on the understanding that the board believed they could not receive the backing of enough of the shareholder’s to push through the deal.
In a statement to the London Stock Exchange on Monday morning, it read: “The Board of Rangers has considered the revised possible offer from Robert Sarver which Mr Sarver announced on 8 January.
“The revised proposal by Mr Sarver was similar to his first proposal in the respect that it sought a placing of 100 million shares (to be priced at 20p in this proposal) which, would require the approval of shareholders (at least a 75% majority) at a general meeting.
“The Board of Rangers rejected the first proposal from Mr Sarver on 6 January on the basis that the Board felt it unlikely that the approval of shareholders holding sufficient shares would be forthcoming. Following receipt of the revised proposal from Mr Sarver, the Board has sought the views of a number of major shareholders on this revised proposal and has reached the same conclusion, namely that the resolution to approve the placing is unlikely to achieve the 75% majority required.
“Accordingly, once again, the Directors do not intend to hold the General Meeting which would be necessary to implement the revised proposal.”
With Rangers in dire need for finance, Sarver looked to entice the board into accepting his bid with the offer a £6.5m loan to help with the club’s financial black hole.
But with his second bid being rejected, Sarver has now taken his offer off the table.
In a statement to the London Stock Exchange hours after the Rangers board announced their decision, Sarver commented: “I’m disappointed the Rangers board has rejected my revised offer, which addressed the club’s immediate and long-term needs. Clearly the current directors have a different path they want to go down. I hope for the sake of the club and the fans, who’ve been very warm and supportive towards me, that it works out. I wish the club and fans the best of luck. If they want my support in the future, then they only have to ask.”
With Sarver now walking away from the table, where does that leave Rangers financially?
There are only four options left open to the Rangers board – Doing a deal with the Three Bears consortium and inviting them onto the board in return for significant funding; Dealing with South African businessman Dave King and handing him a place on the board for finance, turning to Newcastle United owner Mike Ashley with begging bowl in tow like Oliver – Please Sir can I have some more? and the last option would be to put the club into administration.
What are your thoughts on this latest issue within the Rangers pantomime?