Man Utd IPO speculation

[Mighty Thor]

Reported by Reuters....

PREMIER LEAGUE CHAMPIONS MANCHESTER UNITED PLANS $1 BLN IPO IN SINGAPORE BY YEAR-END

Wow...!!

 

[Mr Wolf]

Care to explain? and is that US Dollors or Singapore?

 

[WasStefan]

Whats an ipo

 

[WasStefan]

Just googled it, basically it means United would be worth $1.7BN dollars and would be on the Singapore Stock Market as a business?

 

[PabloWolfo]

Whats an ipo

Initial Public Offering - they're being floated on the stock market.

 

[WasStefan]

That sounds bad to me

 

[giantwolf]

IPO = Initial Public Offering.

Basically, the Glazers want to list Man U on the Hong Kong Stock Exchange.

Edit... too slow

 

[WasStefan]

Basically to earn more money

 

[Mighty Thor]

Glazers are planning to sell shares in Manchester United on the Singapore stock exchange. The shares will be sold on the basis of a valuation of 1bn US dollars for Man Utd equity.

Singapore exchange will be used to take advantage of Asian interest.

Will likely use proceeds to pay Glazers a fat dividend, invest in the club and repay some of their debt. They have £500m of high yield bonds outstanding.

 

[Arcadius]

It's not decided yet, I also believe it to be £1.7b. This means, if it goes ahead the Glazers would make a £1 billion profit from the sale (not bad hey?) and the club would be a company owned by investors in the Hong Kong stock market!

 

[Westport Wolf]

So football becomes more and more of a business venture and goes further from the working class game it started out as. Another clubs desperate attempt to get around the new financial rules being brought into place by FIFA. Another reason why I hate $$$$ing Mancs.

 

[Big Nosed Wolf]

I'm saying nothing - yet!

 

[Mighty Thor]

It's not decided yet, I also believe it to be £1.7b. This means, if it goes ahead the Glazers would make a £1 billion profit from the sale (not bad hey?) and the club would be a company owned by investors in the Hong Kong stock market!

You’re quoting June news re Hong Kong and valuation. This is just out today re Singapore and $1bn. But FYI $1bn capital raise in Singapore could be for 10% of the equity, could be for 50%...not specified at the moment. Maybe the Glazers will list 49% and keep 51% so still have control. Either way they are laughing all the way to the bank if true.

On the plus side I own their 8.75% bonds which are non callable until 2013 so if they repaid them post IPO they would have to pay a premium of 18.5% so I would love this to happen

 

[mrwolf]

well im a welder! I dont have a clue what your all talking about but its sounds dodgy too me

 

[Arcadius]

You’re quoting June news re Hong Kong and valuation. This is just out today re Singapore and $1bn. But FYI $1bn capital raise in Singapore could be for 10% of the equity, could be for 50%...not specified at the moment. Maybe the Glazers will list 49% and keep 51% so still have control. Either way they are laughing all the way to the bank if true.

On the plus side I own their 8.75% bonds which are non callable until 2013 so if they repaid them post IPO they would have to pay a premium of 18.5% so I would love this to happen

You could do well MT! Thanks for the update, I hadn't seen this latest news!

 

[Ulver]

So football becomes more and more of a business venture and goes further from the working class game it started out as. Another clubs desperate attempt to get around the new financial rules being brought into place by FIFA. Another reason why I hate $$$$ing Mancs.

Football was actually invented by the middle & upper class but lets not go off topic eh.

 

[Sharples]

Was always going to happen in some form. Not a surprise...

 

[reanswolf]

Who gives a **** about these greedy ******s (Football owners and bankers). What is the point in being so financially dominant in your field that 90% of your competitors cannot hope to compete? Not the average Man Utd fans fault I agree.

The day will come when it will be recognised as winning things by default.

 

[purplepault69]

Do you think they are being advised by the Chairman of Brum FC ??

 

[mikic]

I imagine they will use the significant majority of the cash generated to pay down Manu Utds debt..............which they own. All in all, the could make a serious amount of cash if they were to pay down the debt, hold on to some of the shares to sell at a later date at a premium.

 

[Pessimistic Wolf]

Disgusting really.
Reinforces football being so much of a business.
If it were Wolves, I would be completely furious. They're selling the soul of the club for the promise of cash.

 

[Jungleee]

Feel sorry for the United loyal. Football clubs should be owned by the fans, like in Germany.

 

[Arcadius]

I imagine they will use the significant majority of the cash generated to pay down Manu Utds debt..............which they own. All in all, the could make a serious amount of cash if they were to pay down the debt, hold on to some of the shares to sell at a later date at a premium.

The debt is in the Company (Man u) therefore they would not have to pay it off!

 

[Big Nosed Wolf]

Football was actually invented by the middle & upper class but lets not go off topic eh.

The origins of football are unclear, surely. No one invented it - more sort of evolved.

Like you say let's not go off topic. Perhaps a new thread.

It is most certainly "The peoples game." Played and watched more than any other sport on the planet - apart from fishing I think.

I think Man Utd will proably fill the sandwiches with bigger prawns if this deal goes ahead. Something useful like that anyway.

 

[Vietnam Wolf]

Sing Wolf may correct me but I'm sure I read this in the Singapore paper 'New Straits Times' about 4 months ago ? Not new news in Singa.

 

[Pengwern]

3 clubs - Manure, Citeh and Chelski - are contemptible capitalist multinationals who don't like level playing fields and have owners who want to defy any sort of regulations, whether on tax havens or Football.

May they be demoted automatically to their respective regional leagues and let's have FC United - a proper Football Club run and owned by its fans - up in their place.

 

[SCB]

The underlying theory is that in Singapore there are enough foolish investors (buyers of paper) to make this thing work.
Another theory is that football - and in particular english - has a separate hum to it which is worth money - as long as yer not the last buyer in the line.

 

[KiwiWolf]

3 clubs - Manure, Citeh and Chelski - are contemptible capitalist multinationals who don't like level playing fields and have owners who want to defy any sort of regulations, whether on tax havens or Football.

May they be demoted automatically to their respective regional leagues and let's have FC United - a proper Football Club run and owned by its fans - up in their place.

Socialist piffle! :wavey:

 

[SCB]

Socialist piffle! :wavey:

Since when had football and socialism a connection?

Ah, yer refer to that match U.S.S.S.S.R - Peoples Republic of Corea (North) where Banyishewskiy scored See link:
[nomedia="http://www.youtube.com/watch?v=jVJFCoSybvo"]Goal of Azeri football player Banishevskiy, USSR 3 - 0 North Korea, World Cup 1966 - YouTube[/nomedia]

Now, that was a day out (of the dacha)

 

[TheGingerSocrates]

Man United was the first club floated on the London Stock Exchange as a plc back in the day. It was also the only football club share that was a worthwhile buy due to the size of the brand.

Of course the Glazers bought it and then took it private with large-scale debt leveraging. Re-floating the organisation is a way to raise cash and clear down that debt before financial fair play kicks in, so it is very logical.

The choice of Singapore is interesting. A second float on the UK exchange wouldcome with a significant regulatory burden and wouldn't necessarily be a great success. Let alone the US exchanges.

 

[reanswolf]

Socialist piffle! :wavey:

Sounds like commonsense to me. :stupido3:

 

[rincewind]

Rather naively I assume there is a potential downside to this or gave Utd hit on a real whiz that every club will try?

 

[Ponty]

Rather naively I assume there is a potential downside to this or gave Utd hit on a real whiz that every club will try?

The down side to the Glazers is they no longer are the sole owners so won't get all future profits. Currently MU make a healthy profit, much of which pays off the interest on the money they borrowed to buy the club. The upside is they pocket a lot of money if the sale is a success as the sale price is far more than they paid. What it means for United - new owners!

 

[kidder_wolf_II]

The reason Man Utd are as big as they are today is down to floating on the stock market but it also put them in the position of being owned by any tom dick or harry. Its difficult to control who buys the shares and then mounts a take away like the Glazers did lumbering the club with massive debts.

This move could go either way it could make them huge or it could cripple them.

 

[Henry's Tackle]

Why do people on here think this is a "dodgy deal"? A company is well within their rights to become a PLC and go into public ownership.

Personally I would hate for Wolves to be owned in such a way, however United have become such a large company now that it makes sense for them to float as it will attract some serious investment.

 

[Big Nosed Wolf]

Why do people on here think this is a "dodgy deal"? A company is well within their rights to become a PLC and go into public ownership.

Personally I would hate for Wolves to be owned in such a way, however United have become such a large company now that it makes sense for them to float as it will attract some serious investment.

I don't think anyone does think it's a dodgy deal, necessarily.

What this sort of corporate dealing has done is put Man Utd into the corporate category. As someone else mentioned this type of dealing could make them richer or cripple them.

So a hugely traditional part of English soccer is being gambled with whilst the average true Utd supporter is watching part of his/her heritage fiddled with by people more concerned with their own wealth.

As you say yourself you would not like WWFC run this way. Why?

 

[Ponty]

I don't think anyone does think it's a dodgy deal, necessarily.

What this sort of corporate dealing has done is put Man Utd into the corporate category. As someone else mentioned this type of dealing could make them richer or cripple them.

So a hugely traditional part of English soccer is being gambled with whilst the average true Utd supporter is watching part of his/her heritage fiddled with by people more concerned with their own wealth.

As you say yourself you would not like WWFC run this way. Why?

No different to Arsenal, Chelsea, Man City, Villa, Blackburn and Sunderland then?!