There are currently around 40 readers awaiting their passwords to “21 Shades of Grey.” Should they follow the pattern established by the first tranche that I cleared yesterday, 90% of recipients will receive their access free of charge. My enterprise was not a commercial success but it reinforced my view that those who don’t have to pay won’t pay. They prefer to receive what passes for analysis from a former social worker who has no grounding in business whatsoever. It shows. There were a number of game-changing takeaways from yesterday’s judgment by Lord Bannatyne. I intend to cover all of them.
By way of an introduction I will revert to question 9 in Volume II of my premium content:
Club 1872: In the event the Takeover Panel is successful in obtaining an order against our Chairman, can the board advise how this might affect any investment planned for the club; specifically in terms of the proposed share issue?
Illegal Concert Party: A decision is still awaited in the case which was heard at the Court of Session. Rangers is not party to the proceedings and the proposed share issue will not be impacted regardless of the decision.
My initial take on this was as follows:
“This response beggars belief. Should Bannatyne add legal bite to the TPE edicts, King will be compelled to make an offer. If he, as expected, does not comply, the share price will be undermined by a chairman who should be in the ‘poky’. King, if he has not already done so, will probably divest himself of his holding, allocating it to his placemen on the board. It will have a major impact on the share issue.”
The response to Club 1872, which is wholly owned by RIFC club secretary James Blair, is at best a fallacious obfuscation; at worst it is a barefaced lie. Which ‘Rangers’ were the Illegal Concerty Party (ICP) referring to? Were they referring to the SFA member club, The Rangers Football Club Ltd, which is wholly owned subsidiary of Rangers International Football Club PLC? Were the ICP attempting to distance themselves from the illegal putsch that led to the demise of the last professional board at Ibrox. A board, led by the highly-respected David Somers, which had a NOMAD, a Junior AIM listing and were a quarter away from breaking even. To cap the ICP’s audacity they responded to a question apropos taking action against the former board by asserting that they will have more to say on this matter at a later date. How sinister of them. Are they going to accuse Llambias of not using the silver napkin rings in the Blue Room or some other made up charge?
Let’s cut to the chase. Dave King is, and always has been, a criminal. When the Apartheid Regime was collapsing under sustained International pressure (a hat tip to Jeremy Corbyn and his ilk) those who feared a civil war were quick to flee the country. Many of those of a Jewish persuasion, including my good friend and former IBM business colleague, Max, upped sticks and relocated to Israel. If my finances ever improve I will join him for some freshly-squeezed Jaffa oranges in Tel Aviv. Those who wish to assassinate me would stick out like a sore thumb there.
I digress. Dave King arrived in Johannesburg with £10 in his pocket. With so many fleeing South Africa he had his pick of vacancies to apply for and could have pursued a career on the strength of his fictitious degree in accountancy. The social reform led to those of a previously disadvantaged minority being given the levers of power. However during the Apartheid Regime tertiary education was denied to the indigenous majority and they were ill-equipped to deal with the demands of High Command.
They therefore delegated to individuals like King and fellow fake accountant Iain Morris. King’s background as a clerk at Weir Pumps and his High School leaving Certificate was more than sufficient to get a jump on the majority of his contemporaries. When King and Morris met, they conspired to rip off Umgeni Water. The principals of Umgeni did not see Morris & King coming. In his position as FD, Morris pushed through King’s Specialist Outsourcing handling their freshly-raised capital reserves. As soon as the ink had dried giving King sole control, Morris joined King at his new company. They then listed Specialist Outsourcing on the JSE, and in what was purported to be an IPO, sold shares in what on paper was a successful and solvent company. They even solicited funds from an orphanage. They then dumped every share at their disposal while briefing analysts that they intended to recapitalise their business and were in it for the long term. Everyone who invested in Specialist Outsourcing lost their shirts. The kids from the orphanage reverted to eking out a living on landfill sites. King and Morris netted 2 Billion Rand from this fraud. They did not give a flying fuck for the plight of the orphans.
How did they get away with it? The Johanessburg Stock Exchange was being run by individuals from the formerly disadvantaged minority. They did not have a clue about what was going on. They did not have a watchdog to safeguard investors. King acted with impunity. He drove a coach and horses through JSE regulations by acquiring 50% of the ordinary shares in MMI Holdings via a third party and allocating them to his daughter. As he had gotten away with this concert party heist in South Africa he thought he could so the same at RIFC PLC. However on this occasion he came up against an organisation with teeth. An organisation that was given permission by Lord Bannatyne to bite.
David Somers, in his capacity as Chairman of a PLC, had a duty to inform The Panel on Takeovers and Mergers of King’s trangressions of the 2006 Companies Act. King’s game of cat and mouse with the City watchdog’s executive, the TPE, came to a crushing end yesterday. Let’s look at the real ramifications and not the spin by Charles Green’s former equity salesman, Richard Wilson, at BBC Sevco.
The third part of my ‘Grey’ trilogy is available at £1.99. I respectfully request that my Platinum Members, who have supported our site with a quantum of £100 or more during the past year, drop me a direct line to access the final part of the trilogy free of charge. I don’t anticipate this exercise being a money spinner, but the lurkers should be fully aware of what they are missing as a consequence of their decision not to support our site. It will also weed out the haters who will have to pay £1.99 to howl at the moon