Takeover latest: Ellis & Whyte in Scotland for MIH talks

[aweebluesoandso 290]

I wish Mr Whyte all the success in the world with our and his Rangers, the fact that he is a Bluenose gives me a lot of hope for the future. I think we have learned a few valuable lesson in financial realism over the last few years which will help him lay some secure foundations to take us forward. I still think there is some more business for SDM and Rangers to make with the redevelopment around Ibrox, why else would Ellis be involved with helping Whyte negotiate the Hurdles that was Ellis's downfall in the previous unsuccessful takeover.

[ian1964 10,411]

CRAIG WHYTE has moved a massive step closer to completing his �£32.5million takeover of Rangers.

 

Now the Motherwell-born tycoon wants to push the deal through BEFORE Christmas.

 

A deal in principle has been reached with Ibrox owner David Murray after a manic day of meetings in Glasgow.

 

Whyte - whose business interests are estimated to be worth a staggering �£1billion - sat down with Gers chairman Alastair Johnston yesterday.

 

It was the first time the pair had talked face to face, and we can reveal that 'significant progress' was made.

 

At the vital Hilton hotel summit, Whyte mapped out his blueprint for the SPL champions.

 

It's understood Johnston was impressed with what he heard and now all parties are braced for a final round of talks.

 

Murray - who brokered the meeting but was absent from the discussions - wants to sell his 92 per cent share in the Ibrox club to Whyte.

 

The 39-year-old has agreed to meet Murray's asking price.

 

Whyte is now ready to write a cheque.

 

The venture capitalist confirmed to the Stock Exchange last month that he was considering making an offer for Rangers and was in talks with Murray International Holdings.

 

The complex and lengthy due diligence process remains ongoing with Whyte taking legal advice on the taxman's pending case against Gers.

 

It's understood that WON'T put any potential deal in jeopardy.

 

Whyte's convinced both Murray and now Johnston that not only does he have the necessary finances to back up his bid, he also has the cash to drive Rangers forward.

 

Whyte remains bound by stock-market rules which prevent him from talking about the proposed takeover, but it's believed he is keen for everything to be completed as soon as possible.

 

SunSport understands Whyte would hold 75 per cent of Murray's shares before selling the rest to London-based property developer Andrew Ellis.

 

Ellis was previously involved in a failed bid to buy the Light Blues earlier this year.

 

A deal would also see Rangers' debt wiped out and significant funds made available to sign new players.

 

It's believed a sum of around �£25m would be made available to strengthen the first team over five years.

 

The club's debt - which stood at �£27.1m on June 30 - would be paid off and an additional �£5.5m would be offered to shareholders.

 

 

Read more: http://www.thescottishsun.co.uk/scotsol/homepage/sport/spl/3259908/Whyte-Xmas.html#ixzz177zQueOv

[ian1964 10,411]

CRAIG WHYTE’S near Ã?£33m takeover of Rangers is approaching the end game after the multi-millionaire financier agreed a deal in principle to buy out Sir David Murray.

 

The London-based 39-year-old, a lifelong supporter of the Ibrox club, met the Rangers chairman Alastair Johnston in a Glasgow hotel yesterday morning to outline his plans for the future should he take control after being given the go-ahead by Murray to hold discussions. Sources later described the meeting as ‘very positive’.

 

Herald Sport understands that due diligence is being carried out by Whyte’s team of lawyers and accountants, and is now well down the line. The ongoing tax investigation from HMRC into off-shore payments made into players’ trusts by Rangers is also being addressed, and warranties may be inserted over any future liabilities should there be a tax bill in the future to ensure smooth passage of the deal.

 

If the due diligence process is completed without a hitch, Whyte would then be in a position to submit a firm offer in writing for the club, which would be announced to the Stock Exchange.

 

Herald Sport has learned of several other crucial factors relating to Whyte’s plan, which proposes a Ã?£27.1m injection of funds to clear the club’s debt to Lloyds Bank, the purchase of Murray Park and Ibrox, and a further Ã?£5.5m to buy out Murray’s majority stake and the other shareholders.

 

 

 

~ Whyte has provided Murray with written proof that he will not borrow from a bank or finance house and the Rangers owner is convinced of Whyte’s ability to provide investment in the playing squad year on year, and the club as a whole, going forward.

 

 

 

~ Andrew Ellis’s involvment in the deal is relatively small. He brought Whyte to the table having befriended him several years ago. However, Ellis, who failed in his own takeover of Rangers in the summer, is not putting up any money for the deal. It is understood Ellis asked, in return for his part in part-brokering the deal, for a shareholding in the club which he will be granted.

 

However, this will be in the form of a loan, and he will have to remunerate Whyte for this shareholding. His exact involvement on any future board, should Whyte take control, has yet to be determined although he is keen to be involved in some capacity.

 

 

 

~ There is no delaying on the side of Whyte, nor was there ever any need for meetings to determine whether he proceeded. Once an agreement was struck with Murray, he was content to leave it to his legal people.

 

A source close to Whyte said last night that he is frustrated at not being able to seal a quick deal and wants to help the manager, Walter Smith, in the transfer window in January in terms of strengthening a threadbare squad.

 

However, he has to be guided by his legal team and cannot proceed any faster than they allow. That said, sources last night intimated it could happen before then; everything hinges on the completion of due diligence.

 

 

 

~ Whyte will make no comment on the Rangers takeover until the deal is done. He remains bound by strict Stock Exchange rules and the City Code on takeovers and also does not want to cloud matters until he has the keys to Ibrox in his hands.

 

However, the fact he met Johnston – something that Ellis never did during his protracted efforts to take control – suggests that he is viewed as the real deal by Murray.

 

http://www.heraldscotland.com/sport/spl/rangers/whyte-s-33m-rangers-deal-a-step-closer-after-very-positive-meeting-1.1072400

[Danny 0]

I've been told (not read the whole thread) that this deal is 65% Whyte and 35% Ellis. Is there any truth in that?

[craig 5,195]

I've been told (not read the whole thread) that this deal is 65% Whyte and 35% Ellis. Is there any truth in that?

 

Supposed to be 75:25

[maineflyer 0]

Does anyone else see Ellis as Murray's way of connecting to any future Ibrox property deal? Whatever else Ellis brings to this deal, it's difficult to see it having anything to do with ensuring the future success of Rangers ... or bankrolling any part of the deal. Can anyone imagine Whyte needing someone like Ellis at his elbow unless it was at Murray's request?

[JMS 0]

Does anyone else see Ellis as Murray's way of connecting to any future Ibrox property deal? Whatever else Ellis brings to this deal, it's difficult to see it having anything to do with ensuring the future success of Rangers ... or bankrolling any part of the deal. Can anyone imagine Whyte needing someone like Ellis at his elbow unless it was at Murray's request?

 

Got to say I can't see why ellis has to be involved in this, apart from the obvious (Redevelopment) but their are plenty of property people in scotland who can do just as god a job with the obvious local knowledge, as well as being Rangers Men/ Woman.

[ian1964 10,411]

Sale of Rangers FC 'will go ahead by mid-January'

 

Published Date: 05 December 2010

By Tom English

A DEAL to sell Rangers Football Club to Scots venture capitalist Craig Whyte will go though by the middle of January, according to senior sources at the club.

Whyte, 39, met with Ibrox chairman Alastair Johnston in Glasgow to discuss the purchase of Sir David Murray's shareholding in the club.

 

The proposed �£33 million deal will wipe out the existing debt that has stymied Rangers in the transfer market for two years.

 

Yesterday, sources at Rangers said the deal, barring any late hitches, could be completed before Christmas but it is more likely that it will be done by the middle of January. "We can't say with 100 per cent certainty, but Whyte has the money and is very convincing. We think the deal will happen," said the source.

 

Murray has presided over Rangers for 22 years but has been keen to sell his stake for some time.

 

http://www.scotsman.com/football/Sale-of-Rangers-FC-39will.6650410.jp

[Tannochsidebear 2,306]

Does anyone else see Ellis as Murray's way of connecting to any future Ibrox property deal? Whatever else Ellis brings to this deal, it's difficult to see it having anything to do with ensuring the future success of Rangers ... or bankrolling any part of the deal. Can anyone imagine Whyte needing someone like Ellis at his elbow unless it was at Murray's request?

 

I understand where you are coming from MF, and I am similarly sceptical about this chancer's involvement, but flip it around and ask why would Whyte agree to a request from Murray to give Ellis a slice. It has already been quoted that Ellis will put up no cash initially, but will eventually get a 25% stake on some sort of pay-up deal with Whyte.

 

One possible answer may be seen from the Scum's bunnet-takeover in the early 90's where some local chancer (Dempsey) facilitated the takeover, got some nice headlines, a small slice he couldnt pay for, and eventually got punted by the bunnet when his usefulness had been used up. This could be the case here where Ellis has put a lot of work into getting the deal done but with no cash to do it, the real moneyman comes along and uses him as a facilitator to speed things along, and will get rid of him in about a year when he cant make his first payment on the shares.

[Yieldshields loyal 0]

Was it not the case that the original Ellis deal fell through as Murray didnt trust Ellis's intentions for the club?