THE RANGERS FOOTBALL
CLUB PLC TO RAISE £53.1 MILLION
Rangers Football Club
30 March 2000
In a letter issued to shareholders of Rangers
Football Club today (30 March, 2000), David Murray, the Club
Chairman stated that Rangers is aiming to raise up to £53.1
million in cash, before expenses, through a Rights Issue.
The key elements of the letter are as follows:
proposed 1 for 3 Rights Issue of up to 15,380,507 new Ordinary
Shares at 345 pence per share, to raise up to £53,062,749
million in cash, before expenses.
minority shareholders, many being loyal fans of the Club, have
the opportunity to participate in the issue if they so wish.
Murray Sports, which is controlled by David Murray, has committed
to take up its rights under the Rights Issue, through its wholly
owned subsidiary RFC Investment Holdings, representing an investment
of £32.3 million.
Of the £32.3 million, the Murray Group is investing £9.3
million with new investment of approximately £20 million
from Ben Nevis Holdings, a company associated with Dave King,
a successful Scottish businessman based in South Africa. A further
£3 million is being invested by private parties.
Dave King is appointed as non-executive director and Douglas
Odam as finance director to the Board of Rangers.
Rangers main objectives are to:
continue to improve the quality of the player pool
develop young players through the new Rangers Academy
improve Rangers’ performance in European competitions
where the revenue streams are enjoying significant growth
increase media revenue, potentially through pay-per-view and
through the internet
use Rangers’ brand loyalty to develop new revenue streams
from internet distribution channels
as a result of recent significant investment in players, borrowing
levels have risen substantially and the Board now wishes to
reduce the Club’s reliance on short-term borrowings, as
publicly stated at the Club’s AGM in December.
Rangers has had discussions with media companies which the directors
believe could lead to a significant strategic relationship.
intention of the Board to seek a flotation of Rangers in the
near future subject to market conditions.
the Board considers the Rights Issue to be in the best interests
of the Club, its shareholders and supporters.
Interim Results for the six months to 31 December 1999 are:
• Turnover for the six months to 31 December increased
by almost 40 per cent to £29.8 million (1998 seven months:
21.4 million).
• Trading profit for the period was £112,000 (1998:
loss of £3,090,000).
More Information: David Southern, Tel: 0131-624
0800
