Finance Expert reacts to Rangers news with more shares available as Kyle Fox talk continues
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Rangers...
Dan Plumley has insisted that shareholders may see their stakes lower at Rangers after the club got approval to issue new shares at Ibrox at the AGM.
The Finance Expert admitted that approval is needed for these changes as the non-pre-emptive basis simply means that current shareholders cannot increase their current stake.
The vote was tight in the end as not everyone is said to likely have agreed with that, especially with the talk of Kyle Fox and another potential unnamed investor at play.
“You’ve got to get approval for this kind of stuff,” he exclusively told Ibrox News.
“As far as it is company law, you have to get approval for any changes for any shares issued, that non-pre-emptive thing, the basic understanding of that is if you are going to do it on that level, it means you are not giving the existing shareholders the opportunity to increase the number of shares they own.
“So, in really basic terms, any other shareholders’ stake can go down slightly as a result of something like this, so you have to get it approved and you have to go through the right motions with it.
“Wider, we have seen that Kyle Fox story rumble in the background, and it might be that’s still involved and at play here but it may be that there is another investor that we don’t know about that is being touted around.
“We may see that come out in the future in terms of the who, but the why is fairly straight forward and you have to go about these things in that way as it can affect the other fractional proportions of other shareholders, which again, is why the vote was pretty tight because not everybody would be ok with that.”
In other Rangers news, this finance expert admits the Bears have numerous options on the table to generate more investment when needed