20 August 2013

Laxey Partners speak to the CRO

by Gordon James | Guest Contributor

After it paid £1 million for one million shares as an initial investor in the new company last October, Laxey Partners are soon set to become the second biggest shareholders in Rangers. It is understood they bought out Cazenove Capital Management Limited's Rangers shares recently and have an agreement to buy a portion of Charles Green’s shares.

Monday 19th August saw them issuing a statement in support of the position taken by fans supporters groups in wanting the removal of directors from the board and support of Mr Blin and Mr Murray. Although the media had spoken to Colin Kingsnorth, they don’t seem to have asked why Laxey want to get involved and what plans Mr Kingsnorth has for the club.

All I did was email Mr Kingsnorth and ask him a few questions. He was kind enough to furnish the following responses which I am putting out there for all Rangers fans to see and for them to judge their value. When I asked about Laxey's track record and being perceived as an activist shareholder (a group who use smaller stakes to pressure management and boards for better investment returns) he replied:

"This is a personal investment so nothing to do with our business of managing money for clients, so we have no push or pressure to achieve returns. We own many private companies.

"What we think is it's a great club and the last few years have been mayhem. It's always going to be a great club and the people that did the wheeling and dealing to buy it don't have the cash to take it forward. Unlike us they bought it for a snip and really I think they have done their stint.

"We put in real cash when the club needed it before it was listed on the stock market."

Mr Kingsnorth continued: "We don't have any issue who runs it as long as they are honest working to get the club back where it belongs and taking everyone in the club with them. Any club that works needs the board, chairman and manager on the same page. Fans will always have every opinion. At the moment there needs to be unity."

When asked about the EGM, Mr Kingsnorth said: "It’s close at the moment and I hope the EGM guys talk with the current board rather than a Mexican stand off. My guess is the EGM guys win but there are so many nominee names it is hard to know who is who."

Asked why he supported the board changes he said he was in support of what most people wanted to do, saying: "Only if that's what the majority want to do. Ideally they would agree a way forward with the current board a happy compromise."

Mr Kingsnorth added that any selling of assets like Murray Park "wouldn't make any sense" and on the development that Mr Green would sell his shares if Laxey would be interested in buying, he said he would "watch from the sidelines."
This article was shown to Colin Kingsnorth before it was sent to CRO. This was done to make sure that what was written was a proper representation of what he said and that I did not incur any possible legal action.