Man U owners eye IPO in Singapore
Source: Agencies |
August 18, 2011, Thursday
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Print Edition
Print Edition
MANCHESTER United's American owners are planning to dilute their stake in the Premier League champions with a partial stock market flotation in Singapore, sources familiar with the plans said on Tuesday.
The Glazer family has chosen the Singapore stock exchange for an initial public offering because Asia is now central to United's growth away from the football pitch, the sources said. They spoke on condition of anonymity because they were not authorized to discuss the English club's financial plans publicly.
When asked for a response, United Chief Executive David Gill declined to comment.
Credit Suisse in Hong Kong, which has been linked with the listing, said it had been told not to comment on the matter.
Manchester United has been valued at US$1.9 billion by Forbes magazine.
The application for a listing could take until the end of the year to be approved by the Singapore Exchange, the sources said.
The IPO could raise US$1 billion by making between 25 and 30 percent of United available, the Financial Times reported online.
Huge debt
While the Glazer family plans to remain in control of United, a partial flotation would reduce the club's debt, which exceeds 500 million pounds (US$817 million).
The club was bought by the Glazers for 790 million pounds in 2005 when they de-listed the club from the London Stock Exchange.
"Obviously the leverage has been bothering the Glazers so they want to use whatever cash they get in to get a return for themselves on capital, to reduce leverage and to give Manchester United cash to go out and buy players," said Stephen Schechter, chairman of London-based investment bank Schechter Co, which has helped English clubs raise money.
Schechter believes the Glazers have chosen the Singapore Exchange because of the "sizzle factor" associated with United in Asia, where more than half of the club's estimated 333 million fans are based.
The Glazer family has chosen the Singapore stock exchange for an initial public offering because Asia is now central to United's growth away from the football pitch, the sources said. They spoke on condition of anonymity because they were not authorized to discuss the English club's financial plans publicly.
When asked for a response, United Chief Executive David Gill declined to comment.
Credit Suisse in Hong Kong, which has been linked with the listing, said it had been told not to comment on the matter.
Manchester United has been valued at US$1.9 billion by Forbes magazine.
The application for a listing could take until the end of the year to be approved by the Singapore Exchange, the sources said.
The IPO could raise US$1 billion by making between 25 and 30 percent of United available, the Financial Times reported online.
Huge debt
While the Glazer family plans to remain in control of United, a partial flotation would reduce the club's debt, which exceeds 500 million pounds (US$817 million).
The club was bought by the Glazers for 790 million pounds in 2005 when they de-listed the club from the London Stock Exchange.
"Obviously the leverage has been bothering the Glazers so they want to use whatever cash they get in to get a return for themselves on capital, to reduce leverage and to give Manchester United cash to go out and buy players," said Stephen Schechter, chairman of London-based investment bank Schechter Co, which has helped English clubs raise money.
Schechter believes the Glazers have chosen the Singapore Exchange because of the "sizzle factor" associated with United in Asia, where more than half of the club's estimated 333 million fans are based.
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