Cash boost for Rangers
Thursday, September 2, 2004
Article summary
Scottish outfit Rangers FC are anticipating a cash injection of up to €84m via a proposed rights issue.
Article body
Increased holding
Murray, previously chairman during Rangers' dominance of the Scottish scene in the 1990s, increased his holding in the Glasgow club to 86 per cent last week when his company, Murray International Holdings Ltd, bought out ENIC's 20 per cent share for €12.8M, as a prelude to a proposed rights issue.
'New chapter'
Reported debts of up to €118m, however, mean that the new money will not be used to boost the playing staff at Ibrox. "This announcement heralds the beginning of a new chapter in Rangers' history," Murray said. "The new funding will ensure the ability to reinvest cash generated from future operations which would otherwise have gone to service and repay historic debt."
Rights issue
Murray's company will underwrite the rights issue up to €73m and Rangers shareholders will be able to subscribe to one new share for each existing share held. Rangers have had a poor start to the 2004/05 season, already trailing defending champions Celtic FC by five points in the Premier League and losing to PFC CSKA Moskva in the UEFA Champions League third qualifying round.
