Dundee’s main supporters group have knocked back the latest offer from the club’s American owner to buy shares from them and increase his stake at Dens Park to over 75%.
But while they’re unwilling to sell any of their shares, the Dundee FC Supporters’ Society have repeated support for plans to move to a new stadium near the city’s Camperdown Park.
In January, Texas-based Tim Keyes, through majority shareholders in the Dark Blues Football Partners Scotland which he owns, had a move to buy the society’s ‘A’ Ordinary shares refused.
They’re the shares that hold the power of veto over such matters as any sale of the club, a move from Dens and even substantial borrowing.
Earlier this month Keyes then made an offer for the society’s Ordinary shares, a move that would give him 75.2% of Dundee shares and the club said would allow them to claim Group Tax Relief to offset losses.
After discussions with the club and their own membership, however, the society’s board have decided that’s a non-starter as well.
In an alternative proposal, the club had asked the society to “agree to support resolutions which increase the club’s share capital and then allot shares specifically to FPS”.
That, too, however, has been rejected. The society board have now informed Dens financial director David Gray and their own members of the decision to hang on to all their shares.
Given there’s no provision in society rules for the sale of any shares and their rejection of the original attempt to get their veto-holding shares, this latest move comes as no surprise, particularly as even an improved offer of £10,000 for the ordinary shares was viewed as derisory by many members.
Dundee are now likely to undertake a full share issue that would allow Keyes to break through the 75% barrier but is likely to entail administrative costs running into five figures.
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