A1bertz
Well-Known Member
I suspect the major shareholders we have now minus those they don't want on board.
Rangers issue news about share issue to current shareholders
- Thread starter mdingwall
- Start date
In your example the 7 million new shares that are printed would raise £70m in cash if sold at £10 a share.. If you add this £70m new cash to the original £70m value of the company it comes to £140m, but you now have a total of 14m shares. Divide the £140m by the 14m shares and it still comes to £10 a share.
Rangers will have a value of assets, but some of the assets will be offset by a level of debt to the 4 Bears giving a net figure. It is this net figure divided by the current number of shares in issue which in theory gives you the current share price.
If you issue more shares to clear the debt the the value will be all the assets without any debt divided by the higher number of shares and should still give you the same theoretical price per individual share.
Obviously there are other factors to be considered such as goodwill and blind faith, but the basic principle should apply
I hope that this helps
temperance
Well-Known Member
Possibly the men who gave out the soft loans, and Club 1872, would be first in line.
I agree, I think that is exactly what will happen.
The soft loans will be (partially) repaid and some new money will be brought into the club.
Barrymoped
Well-Known Member
I agree that some of the soft loans will be repaid but I can’t see any new cash coming in. Dave King said at the AGM that we already have more in soft loans than a share issue could raise.
This share issue is necessary to clear some of the loans but it won’t make any difference to what we see, ie the team on the park, unless I’m missing something.
If Club1872 are included in the offer, or anyone else who does not have an outstanding soft loan, then it will be new money coming into the club.
There may not be massive amounts but I believe there will be some more money. Club1872 have been active in the last few weeks in getting money in, I doubt that's a coincidence and it will be used to buy shares and increase the percentage of shares in the holding company.
EndOfDays
Well-Known Member
Mate the whole point of the entire thing is so that its NOT available to all shareholders.
I don't think he said that. I think he said it wouldn't be in rangers best interest to convert all of the loans to shares at this point in time. As it would have a knock on effect on working capital that could be raised.
I doubt you will, your holding will be diluted the same as mine. There will be none to small investors or non shareholders.
Why would there be none to non shareholders. I'm not arguing with you, just interested in why you think that.
Dave King / The Board may want some people involved who are not currently shareholders.
Is it something you have heard, or just your take on the situation.
Valley Bluenose
RTV? Completed it mate!
Surely making them available to non-shareholders runs the risk of leaving an opening for those who may not have the best interests of the Club at heart to buy them up? Blue Pitch/Margerita still haunt me. May be possible to limit how much an individual/single entity could buy I suppose but the risk, however small, would still be there.
A share issue under Res 10 would take a lot of time and would be very expensive. So a share issue under Res 11 makes a lot more sense. I would be amazed if we didn’t get some new shareholders this time round.
C1872 recently bought shares at 27.5p per share. The price of the new issue has not been set yet but it would normally be a small discount to the “market price”. An issue price of 25p per share is probably a reasonable guesstimate. Selling the maximum number under Res 11 (unlikely?) would at that price raise around £25/26m. So paying back all of the soft loans is unlikely.
Of course, the existing smaller shareholders will be heavily diluted and that may or may not affect the value of their investment depending upon what we achieve with the new money. But there are 2 important points here (1) most small shareholders don’t buy shares to make money, they just want to be a shareholder and feel involved and (2) all the small shareholders who took part in the 2012 issue are already showing big losses. The price in 2012 was 70p compared to around 27.5p today. Never invest in a football club if you are looking to make money. It rarely happens.
C1872 recently bought shares at 27.5p per share. The price of the new issue has not been set yet but it would normally be a small discount to the “market price”. An issue price of 25p per share is probably a reasonable guesstimate. Selling the maximum number under Res 11 (unlikely?) would at that price raise around £25/26m. So paying back all of the soft loans is unlikely.
Of course, the existing smaller shareholders will be heavily diluted and that may or may not affect the value of their investment depending upon what we achieve with the new money. But there are 2 important points here (1) most small shareholders don’t buy shares to make money, they just want to be a shareholder and feel involved and (2) all the small shareholders who took part in the 2012 issue are already showing big losses. The price in 2012 was 70p compared to around 27.5p today. Never invest in a football club if you are looking to make money. It rarely happens.
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thevietnambear
Well-Known Member
Reading this as a limited offer to some shareholders only not open to all.
No, the board can pick who it sells to. It would not be an open market sale, it would be selected investors.
They will want to keep the punters sweet. The only restriction will be the issue of shares to the "bad guys". So that any influence they retain is minimised. IMO
whitbyontbear
Well-Known Member
Can overseas bears contribute through Club 1872 or am I better in buying direct from the Club thru the shares issue.
Captain_Buns
Well-Known Member
Yes of course
Cumbernauld gers
Well-Known Member
Who is he mate? Or just a wind up ha i can never tell on here at times.
ald
Well-Known Member
As regards the soft loan conversions, it isn't as straightforward as people on here make out. DK and T3B still have an issue under Rule 9 of the Takeover Code which they need to navigate their way through. Under the Takeover Code if a concert party which holds more than 30% but less than 50% increases its shareholding then that triggers a Rule 9 bid (unless that increase is "whitewashed", that is approved by ordinary resolution of shareholders by way of a vote in which the concert party isn't entitled to vote and with Takeover Panel consent also required). The current court action (to be appealed to the Inner House of the Court of Session and then the Supreme Court I suspect) relates to the original acquisition of shares by DK's trust and T3B. A further increase in percentage shareholding via a soft loan conversion would effectively give rise to version 2 of the same issue as the original acquisition. Of course if it is the other soft loan providers who convert (i.e. not the DK trust and T3B) then that shouldn't give rise to an issue.
It'll be interesting to see who the new funds are raised from. But the position is certainly more nuanced than most on here assume it to be.
It'll be interesting to see who the new funds are raised from. But the position is certainly more nuanced than most on here assume it to be.
MarkD87
Well-Known Member
It's very good business sense to be doing this at the end of a financial year.
It will also likely involve staff at the club who have earned bonuses for their years work to convert it to shares. Meaning the club will be even healthier for cash currently, and staff can generate larger income if the club continue to grow the share price.
Onwards and upwards.
It will also likely involve staff at the club who have earned bonuses for their years work to convert it to shares. Meaning the club will be even healthier for cash currently, and staff can generate larger income if the club continue to grow the share price.
Onwards and upwards.
Sounds like selective share dealings, wonder who the invited parties will be ?
