The proposal by Mr Sarver comprises a placing of 100 million shares at 18p which, if approved by shareholders at a general meeting, would be immediately followed by an unconditional offer at 18p pursuant to Rule 9 of the Code. The placing would give Mr Sarver control of Rangers.
However, while the Rangers directors welcome Mr Sarver’s approach, they believe that his proposal does not adequately value a controlling interest in the company and accordingly the resolution to approve the placing is unlikely to achieve the 75% majority required. The directors do not intend to hold a general meeting which would be necessary to implement the proposal.
Mr Sarver revealed that it was conversation with former Rangers player, Davie Robertson, now a successful youth football director in Phoenix, Arizona, which first sparked his interest in the club.
Speaking from Arizona, Mr Sarver said: “My three sons all play soccer, as we call it here in the US, for Davie’s club. Initially, I’d had some of my advisors examining potential investments in teams in the English Premier League and in Spain, but Davie encouraged me to take a close look at Rangers. Like all Rangers fans, he’s really upset about how far the club has fallen in recent years and the more we spoke, the more interested I became.
“I’d be the first to admit that I’m not a life-long Rangers supporter, but anyone who knows me is aware that I’m a genuine sports fanatic and owning two major basketball franchises for the past decade has been an enormous privilege. I’ve spent the vast majority of my career in public companies and I’m used to working in very highly regulated environments. I understand the crucial importance of business integrity and transparency.
“Rangers fans have every right to be wary about someone showing an interest in the club they love, especially given some of the events of recent years. First and foremost, I believe what the club needs today is a very quick, major injection of capital to stabilise things and I can give the Rangers supporters a categorical assurance that I have the resources and ability to get this club back to its elite level.
“I’m looking forward to building a consensus amongst supporters and prominent Rangers-minded figures who have the long-term success of the club at heart. I’ve had detailed research carried out on Rangers and I’m convinced that we could take it back to the top of the Scottish game on a stable and sustainable basis.”
Mr Sarver is CEO of New York Stock Exchange-listed Western Alliance Bancorporation, a $10 billion dollar bank holding company, and also sits on the board of directors of two other major publicly-listed US companies, Meritage Homes and Skywest Airlines. He has already provided proof of funds to the Rangers board.
A high-profile figure in US sports, he purchased a majority ownership in the Phoenix Suns basketball franchise in 2004. During Mr Sarver’s tenure the team boasts the fourth-best winning record in the NBA. Women’s basketball is also big in the US and, under Mr Sarver’s ownership, Phoenix Mercury has won three WNBA titles.