Glazers plan $1bn United float, says report
MANCHESTER United’s owners are planning to raise $1bn via a flotation of the club’s shares on the Singapore Stock Exchange by the end of the year, according to reports.
A report from financial news service IFR Asia states that Morgan Stanley and at least one other major bank were close to winning a mandate to handle the initial public offering (IPO) of the club’s shares.
Speculation has been mounting in recent weeks that the Glazer family – who bought the club via a £790m leveraged buyout in 2005 – were looking to sell at least part of their shares in order to either pay down some of the club’s existing debts or to gain a partial return from their investment.
The family have reportedly valued the club at around £1.6bn, and the value of its equity stands at around £1.2bn (£1.97bn). A flotation worth around $1bn would therefore allow it to raise a sizeable sum on public markets while still retaining around 50% of the shares.
A spokesman for Manchester United Football Club said: “We don’t comment on speculation.”
Duncan Drasdo, leader of MUST, the Manchester United Shareholders Trust, an organisation opposed to the Glazers’ ownership of the club, said while details on the reported float are scant, “it is impossible to say with certainty what this will mean for Manchester United or its supporters.”
He said though it could present an opportunity for supporters to take a stake in the club.
“We will provide information to supporters as soon as it is available. It is quite possible that shares will not be available to ordinary supporters and that MUST will have to provide a mechanism for supporters to buy shares.
“We’d like to see at least a million Manchester United supporters sharing in ownership of their club and it is our role as the official supporters trust to try to make that possible,” he added.
