American healthcare tycoon Cavenagh has been in discussions with key shareholders since October in a bid to reach a consensus to herald in a sweeping regime change ahead of the new campaign.
And those talks – which have also included 49ers chief Paraag Marathe – are now close to being finalised as the legal process is worked through ahead of a handover of power. It is understood an announcement is still several weeks away.
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Reports in recent days suggested that former director Sandy Easdale held a potentially decisive say in the takeover as Cavenagh and Marathe sought to secure enough shares to give them the boardroom power base that they require.
The Rangers Review understands that Easdale’s stake in RIFC plc – which now reportedly stands at 2.25 per cent – is not needed for the deal to be completed, however, and suggestions that there is a snag in the takeover are wide of the mark as all parties work towards a completion date. The Rangers Review previously outlined that the deal could be finalised late next month.
A source close to the negotiations told the Rangers Review: “Talks have been ongoing since October to get enough shareholders on board to ensure that the 51 per cent mark can be reached after a new funding issue. The 51 per cent is secured, it is only the legals and regulatory approvals that are holding things up.”
Marathe is the chairman of Leeds United and looks set to be celebrating promotion to the Premier League as Daniel Farke’s side bid to clinch the Championship title. Leeds are level on points with Burnley and could secure their return to the top flight at Stoke City on Monday.
That situation has no bearing on the Rangers deal, however. The fate of United will not impact 49ers Enterprises involvement at Ibrox and the agreement is not contingent on what unfolds in the final fixtures of the second tier campaign.
Former Ibrox chairman Dave King will sell his major shareholding as he ends his 25-year association as a board member, director and chairman with his boyhood club. John Bennett will also offload his stake to give the American consortium around 20 per cent of the shares in RIFC plc.
The remaining shares that are required will be accumulated through percentage deals with a handful of investors and a future rights issue as the new powerbrokers prepare to make significant investments on and off the field. As previously reported by the Rangers Review, significant changes around the top table are expected as familiar faces at Ibrox make way for the new regime.
King will sell his shares at Ibrox as part of the deal (Image: Paul Devlin – SNS Group)
King told the Rangers Review in February how the multi-million pound deal would be his parting gift to his fellow fans as he outlined the role he has played in ensuring Cavenagh and the 49ers will take control of the club a decade after he, John Gilligan and Paul Murray won the boardroom war that saw Easdale, and his brother James, side with the Mike Ashley faction.
“Given that the club had made it clear that I had no further role to play I thought it would be a fitting legacy if I sought out potential investors that met my criteria and who could buy out some of the existing shareholders (such as me) who no longer have a role to play and then inject new funds to become a new anchor shareholder,” King said as he detailed the beginning of the process that will lead to a deal being signed and sealed after several months of high-level negotiations.
“Such an investor would also need to be acceptable to supporters and to have the appropriate skills set to take our unique club forward. It was extremely unlikely to find such an investor in Scotland (which is why I was pulled into the regime all those years ago).”
Cavenagh has been a regular at Ibrox as the deal has progressed and travelled to Glasgow to watch the first leg of the Europa League quarter-final against Athletic Club. And he was joined by 49ers technical director Gretar Steinsson last week as the pair took in the agonising defeat in Bilbao that ended Barry Ferguson’s dreams of leading his side to the final this season.
Ferguson will oversee the remaining five Premiership fixtures this term before the Americans appoint a permanent manager in the summer. A sporting director will also be named to oversee the beginning of a new era at Ibrox.
“I’m going to finish the season as strongly as possible for myself and the players,” Ferguson said in the aftermath of the controversial last eight loss to the Europa League favourites and final hosts. “I’ve not sat down and spoken about it but it needs to get sorted soon because as a club, we obviously need to do a lot of work.
“It’s getting late in the season and the club needs to get back challenging. It’s a good European run, but sadly it ended tonight. But domestically we need to be challenging for trophies. So in terms of my future going forward, I’ll wait and see what happens there. I’ve given the guys a couple of days off to reflect but I’ll be coming in on Monday, ready to hit the last five games of the season head on.”
Patrick Stewart, the chief executive officer, is due to address supporters at a fan forum event on Wednesday evening.
