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Green vows to buy shortfall shares
Published : 11 Oct 2012 17:47:59Rss feed
Charles Green has pledged to take up the slack in any shortfall in Rangers' proposed £20million share issue.
The Irn-Bru Third Division club are to seek admission to the Alternative Investment Market of the London Stock Exchange as they continue to re-align their finances following the liquidation of the 'oldco' club and the acquisition of its assets by Green's consortium for a £5.5million in the summer.
A statement released on Thursday claimed the funds raised will be used for "strengthening the player squad, improving and developing the club's properties and providing additional working capital".
The Ibrox club's chief executive, who values Rangers at £25-30million, hopes to have their admission to the AIM completed by the end of November.
However, the viability of the proposal could be questioned, not least because of the financial climate, the minimum share outlay of £500, and the fact that one of Rangers' former owners, Sir David Murray, underwrote a £50million-plus share issue in 2004.
Green will not underwrite this coming share issue as such, but said: "My personal view is that the figure is low. But if we don't raise £20m then I will buy whatever the shortfall is. I've listed or floated maybe 30 companies and done fundraising as well.
"There's not been anything underwritten in London in the past seven or eight years to my knowledge. Whenever it occurs someone takes a fee for it.
"I'd be happy to underwrite it but what will happen is in three weeks' time you lot (media) will have my trousers around my ankles saying 'Charles Green underwrit Rangers' and took a three per cent fee when it didn't need doing.
"The reality is we don't need to underwrite it as there will be no shares left over. But if they're not (taken up) of course we'll take them."
Green tried to allay the fears of those fans who feel Â£500 is a prohibitive figure. He said: "If people don't buy shares in the run up to Christmas they can buy them in the market as the company will be listed. If someone wants to buy Â£50 or Â£100 worth, that's fine also."
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