Manchester United Seeks Singapore IPO

[pianist]

i read today's papers which said temasek was an active cheerleader encouraging other cornerstone investors to invest in this soccer club. somehow i shiver for our nation's reserve.

[Musicwhiz]

The Straits Times
Mar 10, 2012
Manchester United revisits plans for S'pore IPO

LONDON: Manchester United, the record 19-time English soccer champion, is revisiting plans for an initial public offering (IPO) in Singapore as stock markets recover, according to five people with knowledge of the matter.

United and its bankers restarted discussions about 10 days ago, said one source, who requested anonymity because the deliberations were private. The IPO may take place this year, he said.

The soccer club received the Singapore Exchange's approval in September to raise about US$1 billion (S$1.25 billion) in an IPO, people with knowledge of the matter said at the time.

The process then stalled as volatile stock markets made equity sales more difficult to pull off, bankers said.

United will have to file new financial statements to the Singapore bourse should it opt to proceed with the IPO.

The company may still pick Hong Kong over Singapore for the offering, according to one person.

Singapore's benchmark Straits Times Index has gained 12 per cent since Dec 31 after tumbling 17 per cent last year, the biggest annual decline in three years.

The city-state has not had any IPOs of more than US$100 million since October, data compiled by Bloomberg show.

United hired JPMorgan Chase & Co and Morgan Stanley as bookrunners for the IPO, together with Credit Suisse Group, people with knowledge of the matter said last year.

Mr Philip Townsend, a spokesman for the club, declined to comment.

The soccer club's pretax profit in the year ended June 30 was £29.7 million (S$58.8 million), compared with a loss of £15 million the year before. It is the second time in six years that the club has been profitable.

United's US owners, the Glazer family, bought the team in 2005 for £790 million.

United's chief executive officer David Gill in October told the Sunday Telegraph that the potential share sale would be 'beneficial'.

The club lost the first leg of its Europa League knock-out game to Spain's Athletic Bilbao 3-2 at Old Trafford on Thursday. It will need to win the return in Spain to stand a chance of making the quarterfinals.

United is playing in Europe's second-tier competition after being eliminated from the Champions League in the group stages for only the third time in 17 years.

Last season, it broke Liverpool's record of 18 English championships.

BLOOMBERG

[Drizzt]

its a love hate relationship for this ipo. if you are a fan u really don't want this ipo to go through on one side because it will mean the glazers get what they want. on the other hand this money if used properly can really put the club in a good position.

http://www.investmentmoats.com/stock-mar...bill-mufc/

their debts are not excessive and the crippling problem are wages and interest rates at not the right prices.

but i see football clubs as EPL as a whole. as long as that holds appeal it is inflationary resistent

[bran]

Is it going to be in the pref/perp format? The flurry of SGD perps/prefs must be building to this.....

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From prevoius post:----

Lawyers said that it is unlikely that the club will go down the route of having the two-tier A-share/B-share structure seen in countries such as the United States, where some ordinary equity shares carry no voting or fewer voting rights.

For a start, that is banned by the Singapore Companies Act which states that there should be one vote, and one vote only per equity share.

But lawyers said that it is likely that the club will instead make a significant part of its offering in preference shares - equities that carry no voting rights but get priority over ordinary shares for dividend payments and in the event of liquidation.

SGX chief executive officer Magnus Bocker indicated that such a structure might be feasible in a television interview yesterday.

[RBM]

Will be interesting to see what coupon (and other terms) MU get for their Preference Shares. As a life-long committed Arsenal supporter, I very much hope to see the holders of MU Preference Shares enjoy a very high coupon and very good terms. Think about it.

[Drizzt]

no matter how high the rates will not be as high as their current interest payments

[RBM]

no matter how high the rates will not be as high as their current interest payments

What a pity!! Why can't MU's Preference Shares have a high double digit coupon??

Will never vest in this one............ on a point of almost religous principle.

[Drizzt]

cannot believe how devious some soccer fans can get.

[Musicwhiz]

The Straits Times
Apr 16, 2012
Man U 'may revive Singapore IPO plans'

THE Manchester United initial public offering in Singapore may be on the cards again, with a listing before August, The Sunday Times newspaper in London has reported.

Citing sources, the report says that plans for the IPO are now being revived, following the earlier plan that was shelved last year due to the volatile market.

The Florida-based Glazer family is looking to raise up to £600 million (S$1.2 billion) by selling 25 per cent to 30 per cent of the club via an IPO that would value it at up to £2 billion, the newspaper said. A spokesman for Manchester United said: 'We don't comment on this sort of speculation.'

The recent revival in the market has probably breathed new life into this mega-IPO, with bankers telling Reuters in recent months that the IPO may be launched later this year.

Last year, The Straits Times reported sources saying that the IPO could be delayed due to market conditions. The plan had been to raise as much as US$1 billion (S$1.25 billion) from the deal.

Manchester United Supporters' Trust chief executive Duncan Drasdo said in a statement: 'Until we have more details, it is impossible to say with certainty what this will mean for Manchester United or its supporters.

'However, if they are coming back with the same sort of inflated valuation and the same sort of proposal including non-voting shares, then they should expect the same negative response from the market as the last time.'

There had been criticism last year when speculation emerged that the IPO structure would involve a sale of non-voting shares.

He added: '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.'

The club is currently standing at the top of the English Premier League, a position which will likely boost its finances. For seven consecutive years, Manchester United has topped the Forbes list of most valuable football teams. Last year, it was valued at US$1.86 billion.

The Manchester United IPO joins another high-profile sports IPO that could be headed for the Singapore Exchange.

In recent months, there has been talk that Formula One is mulling over a listing on the SGX.

The F1 business is said to be worth around US$10 billion and will be an even larger IPO for Singapore, if the exchange can land the deal.

[Nick]

Manchester United drops Asia IPO for U.S.

By Daniel Stanton and Fiona Lau

Wed Jun 13, 2012 2:02pm BST

SINGAPORE/HONG KONG, (IFR) - Manchester United has ditched its plans for an Asian listing and is preparing to list in the US, according to sources with knowledge of the deal.

http://uk.reuters.com/article/2012/06/13...MD20120613 [Full Article]