U.S. businessman Robert Sarver raised his offer for Scottish Championship side Rangers, putting another £2M ($3M) on the table and offering £6.5M ($9.8M) "to help the troubled Scottish club get through its cash crisis," according to Roger Blitz of the FINANCIAL TIMES.
Sarver already made an £18M ($27M) approach "which was rejected." The club said Sarver "had now made a revised proposal" of £20M ($30M) for a majority stake, via a placing of 20p a share.
The revised proposal includes a £6.5M short-term loan, "repayable in 90 days or from the proceeds of the placing."
The Rangers statement included a quote from Sarver, who said, "This revised proposal hopefully helps the board deal with its short-term cash flow crunch and also addresses my desire to see the club on a solid long-term financial footing" (FT, 1/8). In Glasgow, Gregor Kyle reported Rangers told Sarver that "they will put his latest offer to major shareholders."
The club said, "The directors thank Mr. Sarver for his continuing interest in Rangers. They are studying the revised proposal which was received, and are consulting with major shareholders, to understand whether the proposal is capable of being implemented." The statement comes as news broke that Mike Ashley’s USC clothing chain "is set to go into administration." And in an "ironic twist" it emerged that Duff and Phelps, who controversially handled Charles Green’s buying of the Rangers assets, "will be appointed administrators" (DAILY RECORD, 1/8). The BBC wrote Sarver suggests that the loan offer of £6.5M "would leave Rangers free of debt," allowing them to repay the loans made by shareholders Ashley and Sandy Easdale. It has since emerged that Easdale, a shareholder and the chairman of the football board, has been repaid the £500,000 ($756,000) emergency interest-free loan "he recently made to the club" (BBC, 1/8). The PA reported the Ashley factor "factor could also remain decisive with the Newcastle United owner positioned strongly at Ibrox after placing his associates Derek Llambias and Barry Leach on the board."
Rangers have yet to repay the £3M loan the Sports Direct tycoon gave the club last year while he "has also tightened his grip on the club’s retail division."
Sarver insisted that "he will provide a steady stream of cash to the club if his bid is successful" (PA, 1/8).
